Use the green triangle (triangle symbol) to shade in the area representing consumer surplus, and then use the purple triang shade in the area representing producer surplus PRICE (Dollars per on) 300 800 100 Domestic Demand Domestic Supply P 50 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of times) 20 Consumer Surplus Producer Surplus ? When South Africa adjusts its trade policy to allow free trade of limes, the price of one ton of limes in South Africa becomes $800. At this price, tons will be supplied by domestic suppliers. tons of limes will be demanded in South Africa, and [ Therefore, South Africa will export tons of limes. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. Without Free Trade With Free Trade (Dollars) (Dollars) Consumer Surplus Producer Surplus by S , and consumer surplus . Therefore, the net effect of allowing international trade on South Africa's total surplus is a of When South Africa allows free trade, the country's producer surplus by S
Use the green triangle (triangle symbol) to shade in the area representing consumer surplus, and then use the purple triang shade in the area representing producer surplus PRICE (Dollars per on) 300 800 100 Domestic Demand Domestic Supply P 50 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of times) 20 Consumer Surplus Producer Surplus ? When South Africa adjusts its trade policy to allow free trade of limes, the price of one ton of limes in South Africa becomes $800. At this price, tons will be supplied by domestic suppliers. tons of limes will be demanded in South Africa, and [ Therefore, South Africa will export tons of limes. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. Without Free Trade With Free Trade (Dollars) (Dollars) Consumer Surplus Producer Surplus by S , and consumer surplus . Therefore, the net effect of allowing international trade on South Africa's total surplus is a of When South Africa allows free trade, the country's producer surplus by S
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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