Chapter 21 or 34. International Trade: Pre-Class & In-Class Activities Packet Name/ I.D. Number: Section: Date: Part 4. Economic Equations and Graphs 1. Using the data in the table, answer the following questions: 2. In the following figure, Pw is the world price and Pw + T is the world price plus a tariff. Identify the following: Points on Canada Italy PPF Good X Good Y Good X Good Y 150 0 90 0 100 25 50 50 50 120 US IImports Warle Market U.S. Importa at The 75 180 Domesite (U.S.) Market a. The level of imports at Pw a. For which good does Canada have a comparative advantage? b. The level of imports at Pw + T._ c. The loss in consumers' surplus as a result of a tariff. d. The gain in producers' surplus as a result of a tariff b. For which good does Italy have a comparative advantage? e. The tariff revenue as the result of a tariff: f. The net loss to society as a result of a tariff g. The net benefit to society of moving from a tariff situation to a no-tariff c. What might be a set of favorable terms of trade for the two countries? situations Economic Effects of Tariffs PACE thismatter.com Domestic Price without Trade Consumer Surplus Domestic Buyers d. Prove that both countries would be better off in the specialization-trade Gain from Importing luger Surplus case than in the no-specialization- no-trade case. Tox Revenue Deadwolght Losses as=Qc Q : on Quantity