Ghana is a thriving economy, but emerging cocoa industry. However, the country currently imports cocoa from the
Question:
Ghana is a thriving economy, but emerging cocoa industry. However, the country currently imports cocoa from the global market at a price of 10 dollars. Its domestic market is illustrated in the graph below Questions
1. In the open economy, how many cocoa are produced and consumed in Ghana? And how much is imported?
2. What effect will a specific tariff t=10 have on the number of imports ? and what is the welfare effects of an import tariff - in comparison to free trade
3. Show the changes in domestic consumption, production, and imports (using the graph).
4. Assess changes in producer, consumer and total welfare on the following points
4.1 Change in imports
4.2 Change in consumer surplus
4.3 Change in producer surplus
4.4 Change in government revenue
4.5 Overall welfare change
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave