Due to a strike by truckers, trade in food between the United States and Mexico is halted.

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Due to a strike by truckers, trade in food between the United States and Mexico is halted. In autarky, the price of Mexican grapes is lower than that of U.S. grapes. Using a diagram of the U.S. domestic demand curve and the U.S. domestic supply curve for grapes, explain the effect of the strike on the following. 

a. U.S. grape consumersʼ surplus 

b. U.S. grape producersʼ surplus 

c. U.S. total surplus.

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Macroeconomics

ISBN: 9781319245269

6th Edition

Authors: Paul Krugman, Robin Wells

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