Learnin The majority of fresh fruit consumed in the United States is now imported, much of it coming from Mexico, Chile, Guatemala, and Costa Rica. The proportion of fruit that is imported increased from 23% in 1975 to 53.1% in 2016. Much of this increase can be attributed to a reduction in transportation costs associated with improved roads and storage technology that has occurred over time. a. In the accompanying graph, shift the price line to illustrate the impact of imports on the market for fruit in the United States. Price (S per pound) Incorrect 10 9 8 7 30 10 4 3 2 1 Domestic Supply Price 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (billions of pounds of fruit) B Domestic Demand b. The price in the domestic market without trade is $5 per pound. The price of imported fruit at the world price is $4 per pound. As a result of trade, the United States imports 4 billion pounds of fruit. c. In the graph, place shape A to indicate the consumer surplus without trade. Place shape B to indicate the addition to consumer surplus that results from trade.

Learnin The majority of fresh fruit consumed in the United States is now imported, much of it coming from Mexico, Chile, Guatemala, and Costa Rica. The proportion of fruit that is imported increased from 23% in 1975 to 53.1% in 2016. Much of this increase can be attributed to a reduction in transportation costs associated with improved roads and storage technology that has occurred over time. a. In the accompanying graph, shift the price line to illustrate the impact of imports on the market for fruit in the United States. Price (S per pound) Incorrect 10 9 8 7 30 10 4 3 2 1 Domestic Supply Price 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (billions of pounds of fruit) B Domestic Demand b. The price in the domestic market without trade is $5 per pound. The price of imported fruit at the world price is $4 per pound. As a result of trade, the United States imports 4 billion pounds of fruit. c. In the graph, place shape A to indicate the consumer surplus without trade. Place shape B to indicate the addition to consumer surplus that results from trade.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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