Task 3. You know the following information about the wine market in Georgia With tariff 30S 10% 40.000 20.000 Without tariff World price Tariff rate (ad valorem) Consumption (bottle) Production (bottle) 30$ 50.000 10.000 a, Is Georgia a small country or a large country? Why? b, Plot a graph with demand and supply curves and indicate the situation of the domestic market with and without tariffs. c, Suppose that the country decides to liberalize trade in wine and remove the tariff. Do consumers win or lose due to this? Show on the graph and calculate how much they win or lose.

Task 3. You know the following information about the wine market in Georgia With tariff 30S 10% 40.000 20.000 Without tariff World price Tariff rate (ad valorem) Consumption (bottle) Production (bottle) 30$ 50.000 10.000 a, Is Georgia a small country or a large country? Why? b, Plot a graph with demand and supply curves and indicate the situation of the domestic market with and without tariffs. c, Suppose that the country decides to liberalize trade in wine and remove the tariff. Do consumers win or lose due to this? Show on the graph and calculate how much they win or lose.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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