Draw a graph showing the initial equilibrium


Problem

1. Eliminate the Mango Market? Draw a supplydemand graph depicting a situation in which banning mango imports drives the quantity of mangos sold to zero.

2. Import Ban for Kiwi Fruit. Initially, there are no restrictions on importing kiwi fruit. The minimum supply price of domestic producers is $0.26, while the minimum supply price of foreign suppliers is $0.08. Each supply curve is linear, with a slope of $0.01 per million pounds. In the initial equilibrium, the price is $0.18 and the quantity is 10 million

a. Draw a graph showing the initial equilibrium.

b. Suppose imports are banned, raising the price to $0.30. Draw a graph to show the new equilibrium and identify the new equilibrium quantity.

c. Compute the consumer surplus before the import ban and after the ban.

d. Suppose the import ban protects 10 jobs in the kiwi fruit industry. What is the cost to consumers for each job protected?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

 

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Microeconomics: Draw a graph showing the initial equilibrium
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