Answered: Price and quantity per pound of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The corresponding graphs show the supply and the demand for strawberries in two countries: Berryland and Fruitland. Use the information in the graphs to answer the questions.

Which groups benefit from free trade in strawberries between the two countries? Choose all that apply.

a. producers in Berryland

b. producers in Fruitland

c. consumers in Berryland

d. consumers in Fruitland

How is the price of strawberries in Berryland, compared to the free-trade prices, affected if it introduces a $0.50 tariff on imports from Fruitland?

a. price increases

b. price remains unchanged

c. price decreases

What quantity of strawberries is demanded for Fruitland with the $0.50 Berryland tariff on imports?

quantity of strawberries:______units

Price and quantity per pound
of strawberries in Berryland
Price
$1.20
1.10
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
20
30 40
50 60 70 80 90 100 110
Quantity (Ib)

Price and quantity per pound
of strawberries in Fruitland
Price
$1.20
1.10
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
D.
0.20
0.10
20 30
40 50 60 70 80
90 100 110
Quantity (Ib)

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