Learnin The majority of fresh fruit consumed in the United States is now imported, much of it coming from Mexico, Chile, Guatemala, and Costa Rica. The proportion of fruit that is imported increased from 23% in 1975 to 53.1% in 2016. Much of this increase can be attributed to a reduction in transportation costs associated with improved roads and storage technology that has occurred over time. a. In the accompanying graph, shift the price line to illustrate the impact of imports on the market for fruit in the United States. Price (S per pound) Incorrect 10 9 8 7 30 10 4 3 2 1 Domestic Supply Price 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (billions of pounds of fruit) B Domestic Demand b. The price in the domestic market without trade is $5 per pound. The price of imported fruit at the world price is $4 per pound. As a result of trade, the United States imports 4 billion pounds of fruit. c. In the graph, place shape A to indicate the consumer surplus without trade. Place shape B to indicate the addition to consumer surplus that results from trade.
Learnin The majority of fresh fruit consumed in the United States is now imported, much of it coming from Mexico, Chile, Guatemala, and Costa Rica. The proportion of fruit that is imported increased from 23% in 1975 to 53.1% in 2016. Much of this increase can be attributed to a reduction in transportation costs associated with improved roads and storage technology that has occurred over time. a. In the accompanying graph, shift the price line to illustrate the impact of imports on the market for fruit in the United States. Price (S per pound) Incorrect 10 9 8 7 30 10 4 3 2 1 Domestic Supply Price 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (billions of pounds of fruit) B Domestic Demand b. The price in the domestic market without trade is $5 per pound. The price of imported fruit at the world price is $4 per pound. As a result of trade, the United States imports 4 billion pounds of fruit. c. In the graph, place shape A to indicate the consumer surplus without trade. Place shape B to indicate the addition to consumer surplus that results from trade.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
![Macmillan Learning
International Trade - End of Chapter Problem
The majority of fresh fruit consumed in the United States is now imported, much of it coming from Mexico, Chile, Guatemala,
and Costa Rica. The proportion of fruit that is imported increased from 23% in 1975 to 53.1% in 2016. Much of this increase
can be attributed to a reduction in transportation costs associated with improved roads and storage technology that has occurred
over time.
a. In the accompanying graph, shift the price line to illustrate the impact of imports on the market for fruit in the United States.
Price (S per pound)
10
X
Incorrect
9
8
00
10
3
2
Domestic Supply
1
Price
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Quantity (billions of pounds of fruit)
B
Domestic Demand
b. The price in the domestic market without trade is $5 per pound. The price of imported fruit at the world price is
$4
per pound. As a result of trade, the United States imports 4 billion pounds of fruit.
c. In the graph, place shape A to indicate the consumer surplus without trade. Place shape B to indicate the addition to consumer
surplus that results from trade.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14044b42-4c29-4bd0-8d18-a5541d1f13fc%2F6ba8295f-585c-4cf2-a3df-36e2b48870c8%2Fy7ol522_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Macmillan Learning
International Trade - End of Chapter Problem
The majority of fresh fruit consumed in the United States is now imported, much of it coming from Mexico, Chile, Guatemala,
and Costa Rica. The proportion of fruit that is imported increased from 23% in 1975 to 53.1% in 2016. Much of this increase
can be attributed to a reduction in transportation costs associated with improved roads and storage technology that has occurred
over time.
a. In the accompanying graph, shift the price line to illustrate the impact of imports on the market for fruit in the United States.
Price (S per pound)
10
X
Incorrect
9
8
00
10
3
2
Domestic Supply
1
Price
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Quantity (billions of pounds of fruit)
B
Domestic Demand
b. The price in the domestic market without trade is $5 per pound. The price of imported fruit at the world price is
$4
per pound. As a result of trade, the United States imports 4 billion pounds of fruit.
c. In the graph, place shape A to indicate the consumer surplus without trade. Place shape B to indicate the addition to consumer
surplus that results from trade.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education