Identify people and organizations that benefit from and suffer because of the tariff (2 points). Include how the tariff will impact your compan

4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of limes in Zambia. The world price (Pw) of limes is $810 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of limes and that there are no transportation or transaction costs associated with international trade in limes. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 1305 1250 1195 1140 1065 1030 975 9.20 865 810 755 Domestic Demand Domestic Supply

4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of maize in Bangladesh. The world price (Pw) of maize is $240 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 440 415 390 365 340 315 290 266 240 190 Domestic Demandi Domestic Supply X P 050 100 160 200 250 300 350 400 450 500 QUANTITY (Tons of maize) ?

The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48. Assume the U.S. imposes $10 tariffs on each unit of the imported good. What will be the quantity imported? From which country? How your answer will change if the U.S. keep the $10 tariffs but join a trade bloc with Mexico? Will the country’s wellbeing increase or decrease? By how much (hint find the change in consumer surplus and the change in government revenue)? Explain your answers.

22. < Previou Suppose there are three countries in the world: Volcania, Portlandia, and Minitown. These three countries produce a total of 3 different kinds of goods: Raspberries, Pomegranates, and Guavas. If Volcania imposes a tariff on Raspberries from Portlandia, and Minitown. OThe price of Raspberries in Volcania will increase for everyone OThe Raspberries industry in Minitown will benefit OThe Raspberries in Portlandia will be the only one to see higher prices for this product

Suppose that the world price of baseball caps is €1 and there are no import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and imported baseball caps. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers ?__________thousands

The market for avocados in Santa Cruz has 5 local producers and 5 local "consumers" (each is actually a restaurant). Each producer can produce 1 avocado, and each consumer demands 1 avocado. The producers and consumers are: Table 1: Producer Cost |Amy's Farm $15 Ostrich Farm $6 Knott's Farm $14 Fambrini's Farm $9 JSM Organic Farms $10 Table 2: Willingness Consumer to pay Cafe Ivita $4 Avanti's $1 El Palomar $10 Olita's $9 Vim $5

1 of What is the effect of a tariff on the market price? Select one: a. It keeps the price of the exported good the same as the world price. b. It raises the price of the imported good above the world price. c. It lowers the price of the exported good below the world price. d. It lowers the price of the imported good below the world price.

2. Welfare effects of a tariff in a small country Suppose Guatemala is open to free trade in the world market for oranges. Since Guatemala is small relative to the international market, the demand for and supply of oranges in Guatemala have no impact on the world price. The following graph shows the domestic market for oranges in Guatemala. The world price of a ton of oranges is Pw = $350. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). PRICE (Dollars per ton) 710 Domestic Demand Domestic Supply 670 630 590 550 510 470 430 28 8 8 8 8 8 8 8 390 350 P. 310 0 15 30 45 60 75 90 105 120 135 150 QUANTITY (Tons of oranges) CS PS Because Guatemala participates in international trade in the market for oranges, it will import tons of oranges. Now suppose the Guatemalan…

3. Welfare effects of a tariff in a small country Suppose Ronduras is open to free trade in the world market for soybeans. Because of Honduras's small size, the demand for and supply of soybeans in Honduras do not affect the world price. The following graph shows the domestic soybeans market in Honduras. The world price of soybeans is Pw = $400 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). 1200 Domestic Demand Domestic Supply 1100 CS 1000 900 PS 800 700 600 500 400 300 200 100 120 140 160 180 200 20 40 60 80 QUANTITY (Tons of soybeans) PRICE (Dollars pe: ton)