PRICE (Dollars per ton) 1360 Domestic Demand Domestic Supply 1290 1220 1150 1080 1010 940 870 800 730 660 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of tons of lemons) + No Trade Equilibrium Consumer Surplus Producer Surplus ? PRICE (Dollars per tons) 1360 Domestic Demand Domestic Supply 1290 1220 1150 1080 1010 940 870 800 730 W 660 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of tons of lemons) A Consumer Surplus Producer Surplus ?

27. Suppose IP is the international trade price and this country's government imposes a $3 tariff on imports of this good, what will be the loss to consumers? 28. Suppose IP is the international trade price and this country's government imposes a $3 tariff on imports of this good, what will be the net loss to this econom? 29. Suppose IP is the international trade price and this country's government imposes a $3 tariff on imports of this good, how much revenue will the government collect? 30. Suppose IP is the international trade price and this country's government imposes a 6 unit quota on imports of this good, what will be the net loss to this econom?

This figure shows demand and supply for a product in country A, which is interested in engaging in international trade. The import price from country B is $3 and from country C is $4. Country A imposes a fixed tariff of $2 per unit of import. Answer the following questions based on these assumptions. Demand Supply O creation will be FJ O diversion will be FJ O creation will be TS O diversion will be TS Querits Based on information provided in the figure above, if country A decides to enter into a free trade agreement with country B, the amount of trade

Russia trades chocolate with France, where it is a staple. The government of Russia places a price floor on their market for chocolate (assume that it is binding). They buy the surplus of 4 units from the producers and sell it in France. Refer to the graph to determine what happens when the government then sells the excess on the world market (to France). What should the government of Russia charge in order to sell four units of chocolate in France? Round your answer to the nearest whole number. $ Price $10 9 8 7 6 5 4 3 2 1 Market for chocolate in France 0 1 2 3 4 5 6 7 Supply Demand 8 9 Quantity 10

Below is a domestic supply and demand graph for cotton. Label the free trade equilibrium point (FTE). Assume a tariff is placed on imported cotton that eliminates all imports. 1. Label the tariff equilibrium point (TE). 2. Shade in the lost gains from trade (LGT) because of this tariff. Lost gains from trade are also called deadweight loss. 3. Shade in the area representing the wasted resources (WR) created as a result of the restriction on imported cotton. Price per pound (cents) 120 115 110 105 100 95 90 85 80 75 domestic demand amount of cotton: VE 22 domestic supply 70 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 Quantity (billion lbs) Incorrect TE world supply At the free trade equilibrium point, how much cotton does the United States grow and produce? LGT WR billion lbs

15

Suppose Guatemala is open to free trade in the world market for wheat. Since Guatemala is small relative to the international market, the demand for and supply of wheat in Guatemala have no impact on the world price. The following graph shows the domestic market for wheat in Guatemala. The world price of a ton of wheat is Pw = $400. 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) 1200 1100 1000+ 900 800 700 600 500 400 300- 200 0 Domestic Demand 20 40 Domestic Supply 60 80 100 120 140 QUANTITY (Tons of wheat) PW 160 180 200 A CS T PS Because Guatemala participates in international trade in the market for wheat, it will import tons of wheat. Now suppose the Guatemalan government decides to impose a tariff of $200 on each imported ton of…

Give explanation also please

Based on the following table, what is the no-trade equilibrium quantity supplied and demanded for Country 2? Enter your answer in the box below. Price 10 12 14 16 18 20 22 24 Country 1: Quantity Supplied 5 6 7 8 9 10 11 12 Type your answer... Country 1: Quantity Demanded 20 18 16 14 12 10 8 6 Country 2: Quantity Supplied 10 11 12 13 14 15 16 17 Country 2: Quantity Demanded 10 9 8 7 6 5 4 3

The U.S. is an importer of ethanol, and let’s assume they are a price-taker in the world market.  Suppose that a technological advance in ethanol production in Brazil, the world’s largest exporter, drives down the world price of ethanol by $5.     Draw a graph and explain how this change in world price affects consumer surplus, producer surplus, and total surplus in the U.S. market.                                              Now suppose the U.S. government institutes an import tariff of $5 in response to the fall in the world price.  On your graph label the revenue raised by the tariff and the deadweight loss created (if it exists).  Who is likely to support this policy?                     Suppose that the fall in price is attributable not to a technological advance but to a subsidy from the Brazilian government to Brazilian ethanol producers.  How would this affect your analysis?