If the United States puts a tariff of $25 per container on imports of roses, explain how
Question:
If the United States puts a tariff of $25 per container on imports of roses, explain how the U.S.
price of roses, the quantity of roses bought, the quantity produced in the United States, and the quantity imported change.
a. Without international trade, what would be the price of a container of roses and how many containers of roses a year would be bought and sold in the United States?
b. At the price in your answer to part (a), does the United States or the rest of the world have a comparative advantage in producing roses?
Wholesalers buy and sell roses in containers that hold 120 stems. The table provides information about the wholesale market for roses in the United States. The demand schedule is the wholesalers’ demand and the supply schedule is the U.S. rose growers’ supply.
Step by Step Answer:
Lets first answer part a of your question a Without international trade the price of a container of roses in the United States would be determined by the intersection of the domestic supply and demand ...View the full answer
