The following table shows the domestic demand schedule and domestic supply schedule for oranges in Belize. Suppose that the world price of oranges is $0.30 per orange.

Thousands

Price Quantity Demanded Quantity Supplied

1.00 2 11

0.90 4 10

0.80 6 9

0.70 8 8

0.60 10 7

0.50 12 6

0.40 14 5

0.30 16 4

0.20 18 3

Question 1: With free trade, how many oranges will Belize import or export?

A. Beliz will export 12,000 oranges.

B. Beliz will import 12,000 oranges.

C. Beliz will export 10,000 oranges.

D. Beliz will import 10,000 oranges.

Question 2: the government imposes a tariff on oranges of $0.20 per orange.How many oranges will Beliz import or export after introduction of the tariff?

A. Beliz will import 6,000 oranges.

B. Beliz will export 6,000 oranges.

C. Beliz will import 5,000 oranges.

D. Beliz will export 5,000 oranges.

Question 3: With a tariff of $0.20 per orange, what is the total government revenue from the tariff?

A. $1,500

B. $1,400

C. $1,300

D. $1,200

Question 4: What is the deadweight loss?

A. $600

B. $650

C. $700

D. $750