Chapter 28, Problem 9P

To determine

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

To determine

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_DT.

To determine

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

To determine

(d)

To show:

The gains from trade as "g" in the graph.

To determine

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.