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 2. The U.S. government, arguing that avocados are a strategically important good, imposes a $5 tariff on avocados. After the tariff is imposed... • a) How many domestic consumers buy avocados? • b) How many domestic producers sell avocados? c) The price paid by domestic consumers is $ per avocado • d) Fill in the blanks: Santa Cruz will |(import/export) avocados e) The cost of the tariff to Santa Cruz is $
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 2. The U.S. government, arguing that avocados are a strategically important good, imposes a $5 tariff on avocados. After the tariff is imposed... • a) How many domestic consumers buy avocados? • b) How many domestic producers sell avocados? c) The price paid by domestic consumers is $ per avocado • d) Fill in the blanks: Santa Cruz will |(import/export) avocados e) The cost of the tariff to Santa Cruz is $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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:2. The U.S. government, arguing that avocados are a strategically important good, imposes a $5 tariff
on avocados. After the tariff is imposed...
• a) How many domestic consumers buy avocados?
• b) How many domestic producers sell avocados?
c) The price paid by domestic consumers is $
per avocado
• d) Fill in the blanks: Santa Cruz will
|(import/export)
avocados
e) The cost of the tariff to Santa Cruz is $
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