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Consider the Sudanese market for tangerines The following graph shows the domestic demand and domestic supply...

Consider the Sudanese market for tangerines The following graph shows the domestic demand and domestic supply curves for tangBased on the previous graph, total surplus in the absence of international trade is The following graph shows the same domestWhen Sudan allows free trade of tangerines, the price of a ton of tangerines in Sudan will be $500. At this price, tons of ta

Consider the Sudanese market for tangerines The following graph shows the domestic demand and domestic supply curves for tangerines in Sudan. Suppose Sudan'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 Sudan 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 Domestic Demand Domestic Supply 54C 520 Equilibrium without Trade 500 480 Consumer Surplus 460 440 420 Producer Surplus 400 380 360 340 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Tons of tangerines) PRICE (Dollars per ton)
Based on the previous graph, total surplus in the absence of international trade is The following graph shows the same domestic demand and supply curves for tangerines in Sudan. Suppose that the Sudanese government changes its international trade policy to allow free trade in tangerines. The horizontal black line (Pw) represents the world price of tangerines at $500 per ton Assume that Sudan's entry into the world market for tangerines has no effect on the world price and there are no transportation or transaction costs associated with international trade in tangerines. Also assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place Use the green triangle (triangle symbol) to shade consumer surplus, and then use the purple triangle (diamond symbol) to shade producer surplus. Domestic Supply Domestic Demand 540 520 Consumer Surplus 500 Pw 480 Producer Surplus 460 440 420 400 380 360 340 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Tons of tangerines) PRICE (Dollars per ton)
When Sudan allows free trade of tangerines, the price of a ton of tangerines in Sudan will be $500. At this price, tons of tangerines will be demanded in Sudan, and tons will be supplied by domestic suppliers. Therefore, Sudan will export tons of tangerines. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. Without Free Trade With Free Trade (Dollars) (Dollars) Consumer Surplus Producer Surplus When Sudan allows free trade, the country's consumer surplus and producer surplus by $ by of $ So, the net effect of international trade on Sudan's total surplus is a $
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Answer #1

Aotal yaabsluel t20ox 200 20000 af Buteranahenal d SHO DS b C DD 3 20 ness wrel b damandsd. 320 tos be suppld Sudon 320-80-24

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