Macm The figure describes the Laotian market for cheese where free trade is allowed. Suppose the world price of cheese is so per pound and that Laos imposes an import tariff of $2 per pound on foreign cheese. Move the price line to describe the new price with the tariff and place the consumer surplus (CS) and producer surplus (PS) areas to describe the new welfare situation. (penod and g) asap to 222222. 16 14 12 10 Laotian market for cheese 24 Domestic supply Price line Domestic demand 20 02 36 40 CS PS
Macm The figure describes the Laotian market for cheese where free trade is allowed. Suppose the world price of cheese is so per pound and that Laos imposes an import tariff of $2 per pound on foreign cheese. Move the price line to describe the new price with the tariff and place the consumer surplus (CS) and producer surplus (PS) areas to describe the new welfare situation. (penod and g) asap to 222222. 16 14 12 10 Laotian market for cheese 24 Domestic supply Price line Domestic demand 20 02 36 40 CS PS
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section9.2: The Winners And Losers From Trade
Problem 2QQ
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![Macmillan Learning
The figure describes the Laotian market for cheese where free trade is allowed. Suppose the world price of cheese is so per
pound and that Laos imposes an import tariff of $2 per pound on foreign cheese. Move the price line to describe the new price
with the tariff and place the consumer surplus (CS) and producer surplus (PS) areas to describe the new welfare situation.
Price of cheese (5 per pound)
222222.
18
16
12
10
O
O
Laotian market for cheese
Domestic supply
Price line
Domestic demand
12
16
20
24
28
Quantity cheese (millions of pound)
36
32
40
CS
PS](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fabc09547-04db-4afc-94d0-e85e70225f9a%2F3e9fb995-24c5-45e6-b8fe-0e83aea5f044%2Fl0vclji_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Macmillan Learning
The figure describes the Laotian market for cheese where free trade is allowed. Suppose the world price of cheese is so per
pound and that Laos imposes an import tariff of $2 per pound on foreign cheese. Move the price line to describe the new price
with the tariff and place the consumer surplus (CS) and producer surplus (PS) areas to describe the new welfare situation.
Price of cheese (5 per pound)
222222.
18
16
12
10
O
O
Laotian market for cheese
Domestic supply
Price line
Domestic demand
12
16
20
24
28
Quantity cheese (millions of pound)
36
32
40
CS
PS
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