The market for avocados in Santa Cruz has 5 local producers and 5 local "consumers" (each is actually a restaurant). Each producer can produce 1 avocado, and each consumer demands 1 avocado. The producers and consumers are: Table 1: Producer Cost |Amy's Farm $15 Ostrich Farm $6 Knott's Farm $14 Fambrini's Farm $9 JSM Organic Farms $10 Table 2: Willingness Consumer to pay Cafe Ivita $4 Avanti's $1 El Palomar $10 Olita's $9 Vim $5 1. Santa Cruz is open to trade with the rest of the world. The world price of avocados is $5. 3. Each of the five consumers of guacamole is also an employer in the (labor) market for guacamole chefs. Each employer's marginal product of labor (MPL) depends on whether it buys an avocado, its a) How many domestic consumers buy avocados? 3 willingness to pay for an avocado (WTP, as in Table 2 above), and the price P it pays (your answer to 1c and 2c). The formula is b) How many domestic producers sell avocados? 2 S 4+(WTP – P) if it buys the avocado otherwise MPL c) The price paid by domestic consumers is $ 10 per avocado d) Fill in the blanks: Santa Cruz will import |(import/export) There are 5 workers: avocados Table 3: Willingness-to- Name accept Ziyu Yifei 4 2. The U.S. government, arguing that avocados are a strategically important good, imposes a $5 tariff Roberto on avocados. After the tariff is imposed.. Bhavyaa a) How many domestic consumers buy avocados? Miguel b) How many domestic producers sell avocados? c) The price paid by domestic consumers is $ per avocado • a) Before the tariff, workers are hired at a wage of $ d) Fill in the blanks: Santa Cruz will (import/export) • b) The tariff causes jobs to be lost avocados • c) Politicians sometimes argue that raising tariffs will protect American jobs. Given your answers e) The cost of the tariff to Santa Cruz is $ above, explain why that argument may not necessarily be true. 3.
The market for avocados in Santa Cruz has 5 local producers and 5 local "consumers" (each is actually a restaurant). Each producer can produce 1 avocado, and each consumer demands 1 avocado. The producers and consumers are: Table 1: Producer Cost |Amy's Farm $15 Ostrich Farm $6 Knott's Farm $14 Fambrini's Farm $9 JSM Organic Farms $10 Table 2: Willingness Consumer to pay Cafe Ivita $4 Avanti's $1 El Palomar $10 Olita's $9 Vim $5 1. Santa Cruz is open to trade with the rest of the world. The world price of avocados is $5. 3. Each of the five consumers of guacamole is also an employer in the (labor) market for guacamole chefs. Each employer's marginal product of labor (MPL) depends on whether it buys an avocado, its a) How many domestic consumers buy avocados? 3 willingness to pay for an avocado (WTP, as in Table 2 above), and the price P it pays (your answer to 1c and 2c). The formula is b) How many domestic producers sell avocados? 2 S 4+(WTP – P) if it buys the avocado otherwise MPL c) The price paid by domestic consumers is $ 10 per avocado d) Fill in the blanks: Santa Cruz will import |(import/export) There are 5 workers: avocados Table 3: Willingness-to- Name accept Ziyu Yifei 4 2. The U.S. government, arguing that avocados are a strategically important good, imposes a $5 tariff Roberto on avocados. After the tariff is imposed.. Bhavyaa a) How many domestic consumers buy avocados? Miguel b) How many domestic producers sell avocados? c) The price paid by domestic consumers is $ per avocado • a) Before the tariff, workers are hired at a wage of $ d) Fill in the blanks: Santa Cruz will (import/export) • b) The tariff causes jobs to be lost avocados • c) Politicians sometimes argue that raising tariffs will protect American jobs. Given your answers e) The cost of the tariff to Santa Cruz is $ above, explain why that argument may not necessarily be true. 3.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:The market for avocados in Santa Cruz has 5 local producers and 5 local "consumers" (each is actually
a restaurant). Each producer can produce 1 avocado, and each consumer demands 1 avocado. The
producers and consumers are:
Table 1:
Producer
Cost
|Amy's Farm
$15
Ostrich Farm
$6
Knott's Farm
$14
Fambrini's Farm
$9
JSM Organic Farms
$10
Table 2:
Willingness
Consumer
to pay
Cafe Ivita
$4
Avanti's
$1
El Palomar
$10
Olita's
$9
Vim
$5
Transcribed Image Text:1. Santa Cruz is open to trade with the rest of the world. The world price of avocados is $5.
3. Each of the five consumers of guacamole is also an employer in the (labor) market for guacamole
chefs. Each employer's marginal product of labor (MPL) depends on whether it buys an avocado, its
a) How many domestic consumers buy avocados? 3
willingness to pay for an avocado (WTP, as in Table 2 above), and the price P it pays (your answer to 1c
and 2c). The formula is
b) How many domestic producers sell avocados? 2
S 4+(WTP – P)
if it buys the avocado
otherwise
MPL
c) The price paid by domestic consumers is $ 10
per avocado
d) Fill in the blanks: Santa Cruz will import
|(import/export)
There are 5 workers:
avocados
Table 3:
Willingness-to-
Name
accept
Ziyu
Yifei
4
2. The U.S. government, arguing that avocados are a strategically important good, imposes a $5 tariff
Roberto
on avocados. After the tariff is imposed..
Bhavyaa
a) How many domestic consumers buy avocados?
Miguel
b) How many domestic producers sell avocados?
c) The price paid by domestic consumers is $
per avocado
• a) Before the tariff,
workers are hired at a wage of $
d) Fill in the blanks: Santa Cruz will
(import/export)
• b) The tariff causes
jobs to be lost
avocados
• c) Politicians sometimes argue that raising tariffs will protect American jobs. Given your answers
e) The cost of the tariff to Santa Cruz is $
above, explain why that argument may not necessarily be true.
3.
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