Use the green point (triangle symbol) to shade consumer surplus, and then use the purple point (diamond symbol) to shade producer surplus.?PRICE (Dollars per tons)1360Domestic DemandDomestic Supply12901220115010801010940870800730Pw6600 50100 150 200 250 300 350 400QUANTITY (Thousands of tons of lemons)450500AConsumer SurplusProducer SurplusWhen New Zealand allows free trade of lemons, the price of a ton of lemons in New Zealand will be $800. At this price,will be demanded in New Zealand, andtons will be supplied by domestic suppliers. Therefore, New Zealand will importtons of lemons.tons of lemons

CS is the extra benefit consumers get from buying a product at a price(P) lower than their WTP or…

PRICE (Dollars per 1010 940 870 800 730 Pw 660 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of tons of lemons) When New Zealand allows free trade of lemons, the price of a ton of lemons in New Zealand will be $800. At this price, will be demanded in New Zealand, and tons will be supplied by domestic suppliers. Therefore, New Zealand will import tons of lemons. tons of lemons

PRICE (Dollars per 1010 940 870 800 730 Pw 660 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of tons of lemons) When New Zealand allows free trade of lemons, the price of a ton of lemons in New Zealand will be $800. At this price, will be demanded in New Zealand, and tons will be supplied by domestic suppliers. Therefore, New Zealand will import tons of lemons. tons of lemons

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 5P

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