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Here is the problem Consider tradein avocados between two large countries, U.S. and Mexico. The U.S. is the importer of avocados, a relatively labor intensive

Here is the problem

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Consider tradein avocados between two large countries, U.S. and Mexico. The U.S. is the importer of avocados, a relatively labor intensive good. 1. Draw a pair of graphs for avocados in free trade for both countries and show the amounts of imports for the U.S. and exports for Mexico. 2. Now consider the effects of an import tariff by the U.S. Use your graph to illustrate the case of a tariff. Also, explain the effects of the tariff in the U.S. on I O , level of welfare, and real wage in the U.S. I O , level of welfare, and real wage in Mexico. I Which factor of production in the U.S. would favor such a tariff

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