I attached the graph to this question. 1. If trade is avoided, Spain consumes _____ wrenches at a price of _____ per wrench. 2. With free trade, for a world price of $4 per wrench, Spain is producing _____wrenches. 3. With free trade, for a world price of $4 per wrench, Spain is consuming _______ wrenches. 4. With free trade, for a world price of $4 per wrench, Spain is importing _________wrenches. 5. If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, Spain produces ____________ and imports __________wrenches. 6. If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, how much tariff revenue will the Spain’s government collect?
I attached the graph to this question.
1. If trade is avoided, Spain consumes _____ wrenches at a
2. With free trade, for a world price of $4 per wrench, Spain is producing _____wrenches.
3. With free trade, for a world price of $4 per wrench, Spain is consuming _______ wrenches.
4. With free trade, for a world price of $4 per wrench, Spain is importing _________wrenches.
5. If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, Spain produces ____________ and imports __________wrenches.
6. If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, how much tariff revenue will the Spain’s government collect?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
