Unsure how to solve properly Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the greentriangle (triangle symbols) to show the consumers' surplus with the tariff and the purple triangle(diamond symbols) to show the producers' surplus with the tariff. Lastly, use the orangequadrilateral (square symbols) to shade the area representing government revenue received fromthe tariff and the tan triangles (dash symbols) to shade the areas representing the net loss ordeadweight loss (DWL) caused by the tariff.PRICE (Dollars per ton)12801220116011:001040980920660800740680Domestic Demand1012 15 18QUANTITY (Thousands of tons of oranges)369Domestic SupplyConsumers' SurplusProducers' SurplusGovernment Revenue2124$7the net welfare effect is aW27 300*|*******World Price Plus TariffComplete the following table to summarize your results from the previous two graphs.Under Free Trade(Dollars)Under a Tariff(Dollars)Goverment Revenue?Based on your analysis, as a result of the tariff, New Zealand's consumers' surplusby $producers' surplusbyin revenue. Therefore,and the government collects $of $ Suppose New Zealand is open to free trade in the world market for oranges. Because of NewZealand's small size, the demand for and supply of oranges in New Zealand do not affect the worldprice. The following graph shows the domestic oranges market in New Zealand. The world price oforanges is Pw=$800 per ton.On the following graph, use the green triangle (triangle symbols) to shade the area representingconsumer's surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purpletriangle (diamond symbols) to shade the area representing producers' surplus (PS).1280 Domestic DemandDomestic Supply1100X1040980PRICE (Dollars per ton)122011609208608007406803 6912 15 18QUANTITY (Thousands of tons of oranges)0128012:20If New Zealand allows international trade in the market for oranges, it will importof oranges.116021110024 27Now suppose the New Zealand government decides to impose a tariff of $120 on each importedton of oranges. After the tariff, the price New Zealand consumers pay for a ton of oranges is$, and New Zealand will importtons of oranges.Show the effects of the $120 tariff on the following graph.104030Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the greentriangle (triangle symbols) to show the consumers' surplus with the tariff and the purple triangle(diamond symbols) to show the producers' surplus with the tariff. Lastly, use the orangequadrilateral (square symbols) to shade the area representing government revenue received fromthe tariff and the tan triangles (dash symbols) to shade the areas representing the net loss ordeadweight loss (DWL) caused by the tariff.Domestic DemandPS?Domestic SupplytonsWorld Price Plus Tariff

In the normal way, deadweight loss is often an outcome of government policies such as price floors,…

Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumers' surplus with the tariff and the purple triang. (diamond symbols) to show the producers' surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received fra the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. PRICE (Dollars per ton) 1280 Domestic Demand 1220 1160 1100 1040 980 920 660 800 740 680 Domestic Supply 0 3 9 12 15 18 21 QUANTITY (Thousands of tons of oranges) 6 24 W 27 30 4 World Price Plus Tariff CS PS 14 Government Revenue DWL (?) Complete the following table to summarize your results from the previous two graphs. Under Free Trade Under a Tariff

Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumers' surplus with the tariff and the purple triang. (diamond symbols) to show the producers' surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received fra the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. PRICE (Dollars per ton) 1280 Domestic Demand 1220 1160 1100 1040 980 920 660 800 740 680 Domestic Supply 0 3 9 12 15 18 21 QUANTITY (Thousands of tons of oranges) 6 24 W 27 30 4 World Price Plus Tariff CS PS 14 Government Revenue DWL (?) Complete the following table to summarize your results from the previous two graphs. Under Free Trade Under a Tariff

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 8PA

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