Question 1

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,by how much do consumer surplus,producer surplus,and total surplus change with trade?

Accepted Answer

With trade,consumer surplus falls by $40,producer surplus rises by $60,and total surplus increases by $20.

Question 2

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-27.With no trade allowed,how much are consumer surplus,producer surplus,and total surplus?

Accepted Answer

Without trade,consumer surplus is $4,000,producer surplus is $4,000,and total surplus is $8,000.

Question 3

Suppose the world price of coffee is $3 per pound and Brazil's domestic price of coffee without trade is $2 per pound.If Brazil allows free trade,will Brazil be an importer or an exporter of coffee?

Accepted Answer

Brazil will be an exporter of coffee.

Question 4

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,how many units will domestic consumers demand,and how many units will domestic producers produce?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 5

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 6

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-27.With no trade allowed,what are the equilibrium price and equilibrium quantity in this market?

Accepted Answer

The answer of Figure 9-27
The following diagram shows the domestic...

Question 7

Suppose in the country of Jumanji that the price of coffee with no trade allowed is below the world price of coffee.If Jumanji allows free trade,will Jumanji be an importer or an exporter of coffee?

Accepted Answer

The answer of Suppose in the country of Jumanji that...

Question 8

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,how much are consumer surplus,producer surplus,and total surplus with trade?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 9

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-27.If the country allows free trade,how many units will domestic consumers demand and how many units will domestic producers produce?

Accepted Answer

The answer of Figure 9-27
The following diagram shows the domestic...

Question 10

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-26.With no trade allowed,what are the equilibrium price and equilibrium quantity in this market?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 11

Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed.If the world price of oranges is $10 per bushel and if Nash allows free trade,will Nash be an importer or an exporter of oranges?

Accepted Answer

The answer of Suppose in the country of Nash that...

Question 12

A tax on an imported good is called a ------ .

Accepted Answer

The answer of A tax on an imported good is...

Question 13

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-27.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Accepted Answer

The answer of Figure 9-27
The following diagram shows the domestic...

Question 14

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-26.With no trade allowed,how much are consumer surplus,producer surplus,and total surplus in this market?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 15

Suppose in the country of Nash that the price of corn is $4 per bushel with no trade allowed.If the world price of corn is $3 per bushel and if Nash allows free trade,will Nash be an importer or an exporter of corn?

Accepted Answer

The answer of Suppose in the country of Nash that...

Question 16

A country has a comparative advantage in a product if the world price is ----- than that country's domestic price without trade.

Accepted Answer

The answer of A country has a comparative advantage in...

Question 17

Suppose the world price of coffee is $2 per pound and Brazil's domestic price of coffee without trade is $3 per pound.If Brazil allows free trade,will Brazil be an importer or an exporter of coffee?

Accepted Answer

The answer of Suppose the world price of coffee is...

Question 18

Suppose in the country of Jumanji that the price of wheat with no trade allowed is above the world price of wheat.If Jumanji allows free trade,will Jumanji be an importer or an exporter of wheat?

Accepted Answer

The answer of Suppose in the country of Jumanji that...

Question 19

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-27.If the country allows free trade,how much are consumer surplus,producer surplus,and total surplus with trade?

Accepted Answer

The answer of Figure 9-27
The following diagram shows the domestic...

Question 20

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-27.If the country allows free trade,by how much do consumer surplus,producer surplus,and total surplus change with trade?

Accepted Answer

The answer of Figure 9-27
The following diagram shows the domestic...

Quiz 9: Application International Trade: Part A

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,by how much do consumer surplus,producer surplus,and total surplus change with trade?

Figure 9-27 The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. -Refer to Figure 9-27.With no trade allowed,how much are consumer surplus,producer surplus,and total surplus?

Suppose the world price of coffee is $3 per pound and Brazil's domestic price of coffee without trade is $2 per pound.If Brazil allows free trade,will Brazil be an importer or an exporter of coffee?

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,how many units will domestic consumers demand,and how many units will domestic producers produce?

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Figure 9-27 The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. -Refer to Figure 9-27.With no trade allowed,what are the equilibrium price and equilibrium quantity in this market?

Suppose in the country of Jumanji that the price of coffee with no trade allowed is below the world price of coffee.If Jumanji allows free trade,will Jumanji be an importer or an exporter of coffee?

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,how much are consumer surplus,producer surplus,and total surplus with trade?

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26.With no trade allowed,what are the equilibrium price and equilibrium quantity in this market?

Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed.If the world price of oranges is $10 per bushel and if Nash allows free trade,will Nash be an importer or an exporter of oranges?

A tax on an imported good is called a ------ .

Figure 9-27 The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. -Refer to Figure 9-27.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26.With no trade allowed,how much are consumer surplus,producer surplus,and total surplus in this market?

Suppose in the country of Nash that the price of corn is $4 per bushel with no trade allowed.If the world price of corn is $3 per bushel and if Nash allows free trade,will Nash be an importer or an exporter of corn?

A country has a comparative advantage in a product if the world price is ----- than that country's domestic price without trade.

Suppose the world price of coffee is $2 per pound and Brazil's domestic price of coffee without trade is $3 per pound.If Brazil allows free trade,will Brazil be an importer or an exporter of coffee?

Suppose in the country of Jumanji that the price of wheat with no trade allowed is above the world price of wheat.If Jumanji allows free trade,will Jumanji be an importer or an exporter of wheat?

Figure 9-27 The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. -Refer to Figure 9-27.If the country allows free trade,how much are consumer surplus,producer surplus,and total surplus with trade?

Figure 9-27 The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. -Refer to Figure 9-27.If the country allows free trade,by how much do consumer surplus,producer surplus,and total surplus change with trade?