Price (S/ton) 350 300 200 100 10 Quantity of Sugar (milliontons) 15 20 A) If the U.S. did not trade what price would the good cost? If the world price was $200 what quantity would the U.S. produce? What quantity would be imported. What is consumer surplus at the world price? Producer surplus at the world price? Who benefits from the free trade and who gets hurt? B) If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is hurt? What quantity will U.S. producers now produce? What happens to consumer surplus from $200 to $300? What does producer surplus do with the price going from $200 to $300? What does the government gain with the tariff? C) Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the most used trade restriction?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Price
(S/ton)
350
300
200
100
10
Quantity of Sugar
(milliontons)
15
20
A) If the U.S. did not trade what price would the good cost? If the world price was $200 what
quantity would the U.S. produce? What quantity would be imported. What is consumer surplus
at the world price? Producer surplus at the world price? Who benefits from the free trade and
who gets hurt?
B) If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is
hurt? What quantity will U.S. producers now produce? What happens to consumer surplus
from $200 to $300? What does producer surplus do with the price going from $200 to $300?
What does the government gain with the tariff?
C) Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the
most used trade restriction?
Transcribed Image Text:Price (S/ton) 350 300 200 100 10 Quantity of Sugar (milliontons) 15 20 A) If the U.S. did not trade what price would the good cost? If the world price was $200 what quantity would the U.S. produce? What quantity would be imported. What is consumer surplus at the world price? Producer surplus at the world price? Who benefits from the free trade and who gets hurt? B) If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is hurt? What quantity will U.S. producers now produce? What happens to consumer surplus from $200 to $300? What does producer surplus do with the price going from $200 to $300? What does the government gain with the tariff? C) Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the most used trade restriction?
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