Question

Consider the Guatemalan market for tangerines. The following graph shows the domestic demand and domestic supply curves for tangerines in Guatemala. Suppose Guatemala's government currently does not allow international trade in tangerines Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Guatemala in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use the purple triangle (diamond symbol) to shade the area representing producer surplus in equilibrium 660 Domestic Demand Domestic Supply Equilibrium without Trade Consumer Surplus PRICE Dollars per ton) Producer Surplus 0 30 60 90 120 150 160 210 240 QUANTITY (Tons of tangerines) 270 300 earch

Answer 1

Date page sons unte surplus Price Products surplus 0 30 120 • Equilibrium the absence Equilibrium les 150. 80 100 180 210 240 270 auty e tons of tangerines) price of a ton of tangereus is of trade is $460 U quantity of a long of tangeries to tal surplus in absence trade as consunces 1 (660-200 x 150 of intercational surplus & produce supply - $34.500