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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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 triangle (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 from 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 1220 1160 11:00 1040 980 920 660 800 740 680 Domestic Demand 10 12 15 18 QUANTITY (Thousands of tons of oranges) 3 6 9 Domestic Supply Consumers' Surplus Producers' Surplus Government Revenue 21 24 $ 7 the net welfare effect is a W 27 30 0 *|******* World Price Plus Tariff Complete 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' surplus by $ producers' surplus by in revenue. Therefore, and the government collects $ of $
Transcribed Image Text: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 triangle (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 from 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 1220 1160 11:00 1040 980 920 660 800 740 680 Domestic Demand 10 12 15 18 QUANTITY (Thousands of tons of oranges) 3 6 9 Domestic Supply Consumers' Surplus Producers' Surplus Government Revenue 21 24 $ 7 the net welfare effect is a W 27 30 0 *|******* World Price Plus Tariff Complete 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' surplus by $ producers' surplus by in revenue. Therefore, and the government collects $ of $
Suppose New Zealand is open to free trade in the world market for oranges. Because of New Zealand's small size, the demand for and supply of oranges in New Zealand do not affect the world price. The following graph shows the domestic oranges market in New Zealand. The world price of oranges is Pw=$800 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer's surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producers' surplus (PS). 1280 Domestic Demand Domestic Supply 1100 X 1040 980 PRICE (Dollars per ton) 1220 1160 920 860 800 740 680 3 6 9 12 15 18 QUANTITY (Thousands of tons of oranges) 0 1280 12:20 If New Zealand allows international trade in the market for oranges, it will import of oranges. 1160 21 1100 24 27 Now suppose the New Zealand government decides to impose a tariff of $120 on each imported ton of oranges. After the tariff, the price New Zealand consumers pay for a ton of oranges is $ , and New Zealand will import tons of oranges. Show the effects of the $120 tariff on the following graph. 1040 30 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 triangle (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 from the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. Domestic Demand PS ? Domestic Supply tons World Price Plus Tariff
Transcribed Image Text:Suppose New Zealand is open to free trade in the world market for oranges. Because of New Zealand's small size, the demand for and supply of oranges in New Zealand do not affect the world price. The following graph shows the domestic oranges market in New Zealand. The world price of oranges is Pw=$800 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer's surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producers' surplus (PS). 1280 Domestic Demand Domestic Supply 1100 X 1040 980 PRICE (Dollars per ton) 1220 1160 920 860 800 740 680 3 6 9 12 15 18 QUANTITY (Thousands of tons of oranges) 0 1280 12:20 If New Zealand allows international trade in the market for oranges, it will import of oranges. 1160 21 1100 24 27 Now suppose the New Zealand government decides to impose a tariff of $120 on each imported ton of oranges. After the tariff, the price New Zealand consumers pay for a ton of oranges is $ , and New Zealand will import tons of oranges. Show the effects of the $120 tariff on the following graph. 1040 30 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 triangle (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 from the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. Domestic Demand PS ? Domestic Supply tons World Price Plus Tariff
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