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Page 4 of 20 ZOOM + Twyla also buys coffee for the Cafe in a perfectly competitive market without externalities - but this market is
Page 4 of 20 ZOOM + Twyla also buys coffee for the Cafe in a perfectly competitive market without externalities - but this market is international. The current United States price is $10 per pound of coffee, while the global price is $6 per pound. Use this information for the following 2 questions. 20 18 16 14 12 10 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Pounds of Coffee 8. (Twyla's Tariffs) Assuming the international market is open, how much domestic production should we anticipate? a. 1,000 b. 3,000 c. 5,000 d. 7,000 9. (Twyla's Tariffs) The United States government takes a very anti-trade turn, and imposes a tariff that pushes imports to zero. How much does United States surplus change? a. $4,000 b. $2,000 C. -$3,000 d. -$8,000
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