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Suppose Sudan is open to free trade in the world market for oranges. Since Sudan is small relative to the international market, the demand for

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Suppose Sudan is open to free trade in the world market for oranges. Since Sudan is small relative to the international market, the demand for and supply of oranges in Sudan have no impact on the world price. The following graph shows the domestic market for oranges in Sudan. The world price of a ton of oranges is Pw = $350. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). (? 710 Domestic Demand Domestic Supply 670 CS 630 590 PS 550 PRICE (Dollars per ton) 510 470 430 390 350 310 15 30 45 60 75 90 105 120 135 150 QUANTITY (Tons of oranges) Because Sudan participates in international trade in the market for oranges, it will import tons of oranges. Now suppose the Sudanese government decides to impose a tariff of $40 on each imported ton of oranges. Under the tariff, the price Sudanese consumers pay for a ton of oranges becomes $ , and Sudan will import tons of oranges

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