「 每日一练」 ALevel经济例题解析及练习Analysis of trade

「每日一练ALevel Economy」

今日知识点：Analysis of trade

例题

Without trade, PD = $3000, Q = 400; in world markets, PW = $1500

Under free trade, how many TVs will the country import or export?

Identify consumer surplus, producer surplus, and total surplus without trade, and with trade.

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解析

Under free trade,

• domestic consumers demand 600
• domestic producers supply 200

imports = 400

Without trade,

CS = A

PS = B + C

Total surplus = A + B + C

With trade,

CS = A + B + D

PS = C

Total surplus = A + B + C + D

下面我们为大家准备了一道同类型的题目，请大家一起来试试解答。

Your turn

Question: Tariff on Cotton Shirts

PW = $20

Tariff:  T = $10/shirt

Under free trade, how many cotton shirts will the country import or export?

Identify consumer surplus, producer surplus, and total surplus without trade, and with trade.

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Correct Answer：

Consumers must pay $30 for an imported shirt. So, domestic producers can charge $30 per shirt.

In general, the price facing domestic buyers & sellers equals (PW + T).

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