Domestic Demand Domestic Supply Consumer Surplus Pw Producer Surplus O 45 90 135 180 225 270 315 380 405 450 QUANTITY (Tons of lemons) ew Zealand allows free trade of lemons, the price of a ton of lemons in New Zealand will be $800. At this price, [ ] tons will be supplied by domestic suppliers. Therefore will be demanded in New Zealand, and | ]tons of lemons. be information from the previous tasks, complete the following table to analyze the welfare effect of allowing free tra Without Free Trade With Free Trade (Dollars) (Dollars)

3:55 PM Tue Apr 27 * 40% D ( Notes April 27, 2021 at 3:54 PM When China's supply of clothing increases, the increase in world supply lowers the world price of clothing. -Draw an appropriate diagram to analyze how this change in the world price affects consumer surplus, producer surplus, and total surplus in a nation that imports clothing, such as the US. (1)Label the old and new world prices(2)The change in quantity demanded my customers, and (3) The change in quantity supplied by domestic producers. Make a table that shows consumer surplus, producer surplus, and total surplus at the old world price and New World price.

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00 7 F. PRICE (Dollars per ton) 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $530 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 2. Domestic Demand Domestic Supply 770 740 710 680 650 620 06 P, 530 MacBook Pro Search or type URL 4. 51 9.

The figure provided shows the Canadian domestic market for calculators. Price of calculators $450 40 30 20 25 10 S world price with tariff world price Fore 50 100 200 300 400 500 600 700 800 900 Quantity of calculators If the world price is $5 and an import quota of 600 is imposed, the price after the quota, in numerals, is

4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for wheat in New Zealand. The world price (Pw) of wheat is $255 per bushel and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of wheat and that there are no transportation or transaction costs associated with international trade in wheat. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per bushel) 480 Domestic Demand 455 430 405 380 355 330 305 280 255 230 0 " 30 Domestic Supply 60 90 120 150 180 210 QUANTITY (Bushels of wheat) ++ PW 240 270 300 ?

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PRICE (Dollars per tonne) 800 Domestic Demand 750 700 650 600 550 500 450 400 350 300 0 Domestic Supply 40 80 120 160 200 240 280 320 360 400 QUANTITY (Thousands of tonnes of tangerines) No Trade Equilibrium A Consumer Surplus ◇ Producer Surplus Based on the previous graph, total surplus in the absence of international trade is the graph.) $25 million. (Hint: Take note of the units on the axes of The following graph shows the same domestic demand and supply curves for tangerines in Guatemala presented in the previous graph. Suppose that the Guatemalan government changes its international trade policy to allow free trade in tangerines. The horizontal black line (Pw) represents the world price of tangerines at $500 per tonne. Assume that Guatemala's entry into the world market for tangerines has no effect on the world price and that there are no transportation or transaction costs associated with international trade in tangerines. Also assume that domestic suppliers will satisfy domestic…

Figure: Tariffs Price $90 88 150 O $90; 1,150 O $60; 650 O $60, 1,150 O $40; 1,800 Domestic spply World supply tarif 1150 1550 1800 In the domestic market with international trade and no tariffs, the price is Domenic demand Quantity and the quantity purchased in the United States is units.