Suppose the world price of kiwi fruit is $20 per case and the U.S. equilibrium price with no international trade is $35 per case. If the U.S. government had previously banned the import of kiwi fruit but then imposed a tariff of $5 per case and allowed kiwi imports, what would happen to the equilibrium price and quantity of kiwi fruit consumed in the United States?
Suppose the world price of kiwi fruit is $20 per case and the U.S. equilibrium price with no international trade is $35 per case. If the U.S. government had previously banned the import of kiwi fruit but then imposed a tariff of $5 per case and allowed kiwi imports, what would happen to the equilibrium price and quantity of kiwi fruit consumed in the United States?
Chapter35: International Trade Restrictions
Section: Chapter Questions
Problem 9E
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Suppose the world price of kiwi fruit is $20 per case and the U.S. equilibrium price with no international trade is $35 per case. If the U.S. government had previously banned the import of kiwi fruit but then imposed a tariff of $5 per case and allowed kiwi imports, what would happen to the equilibrium price and quantity of kiwi fruit consumed in the United States?
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