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12. Supposed that an economy opens to international trade and becomes an importer in a particular market. What is the source of the gains from trade? None of these. International producers who have a relatively low marginal cost of production.e International producers who have a relatively high marginal cost of production. International consumers who have a relatively low willingness to pay. International consumers who have a relatively high willingness to pay. 16. In the market for coffee, demand is given by Q = 10 - P, and supply is given by Q = P, where Q represents tonnes of coffee per year. Suppose that the world price is $6. The government has decided to impose an import tariff of $1 per ton of coffee per year. Which of the following is true? %3D Consumer surplus will decrease. Producer surplus will increase. Total surplus will decrease. All of the above. None of the above.

12. Supposed that an economy opens to international trade and becomes an importer in a particular market. What is the source of the gains from trade? None of these. International producers who have a relatively low marginal cost of production.e International producers who have a relatively high marginal cost of production. International consumers who have a relatively low willingness to pay. International consumers who have a relatively high willingness to pay. 16. In the market for coffee, demand is given by Q = 10 - P, and supply is given by Q = P, where Q represents tonnes of coffee per year. Suppose that the world price is $6. The government has decided to impose an import tariff of $1 per ton of coffee per year. Which of the following is true? %3D Consumer surplus will decrease. Producer surplus will increase. Total surplus will decrease. All of the above. None of the above.

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 3CQQ
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12. Supposed that an economy opens to international trade and becomes an importer in a particular market. What is the source of the gains from trade? None of these. International producers who have a relatively low marginal cost of production.e International producers who have a relatively high marginal cost of production. International consumers who have a relatively low willingness to pay. International consumers who have a relatively high willingness to pay. 16. In the market for coffee, demand is given by Q = 10 - P, and supply is given by Q = P, where Q represents tonnes of coffee per year. Suppose that the world price is $6. The government has decided to impose an import tariff of $1 per ton of coffee per year. Which of the following is true? !3! Consumer surplus will decrease. Producer surplus will increase. Total surplus will decrease. All of the above. None of the above.
Transcribed Image Text:12. Supposed that an economy opens to international trade and becomes an importer in a particular market. What is the source of the gains from trade? None of these. International producers who have a relatively low marginal cost of production.e International producers who have a relatively high marginal cost of production. International consumers who have a relatively low willingness to pay. International consumers who have a relatively high willingness to pay. 16. In the market for coffee, demand is given by Q = 10 - P, and supply is given by Q = P, where Q represents tonnes of coffee per year. Suppose that the world price is $6. The government has decided to impose an import tariff of $1 per ton of coffee per year. Which of the following is true? !3! Consumer surplus will decrease. Producer surplus will increase. Total surplus will decrease. All of the above. None of the above.
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