Question: Its for my macroeconomics class. Thanks 4 - Using the following exhibit please answer the following questions. A - Explain what is the effect of

Its for my macroeconomics class. Thanks

4 - Using the following exhibit please answer the following questions. A - Explain what is the effect of free trade on the price of sugar in Tartar? B - If you were a sugar producer in Tartar explain how would you feel about free trade? C - If you were a candy producer in Tartar explain how would you feel about free trade? D - Considering consumers and producers of sugar in this example does everyone bear the same burden if there is free trade? .30 DAS 25 Exports Price with .24 - no trade er pound) 20 .20 Price with partial protectionism Price with free trade .16 - .. 16. - Price with Price with partial protectionism .14 - Price (cents per p free trade Price with no trade 12 - Price (cents 10 - .10 Imports .05 .05 00 .00 60 727680 80 100 Quantity (pounds of sugar) Quantity (pounds of sugar) Tartar Plaque Tartar Plaque Quantity Quantity Quantity Quantity Price Supplied Demanded Supplied Demanded 8 cents 20 35 60 100 12 cents 30 30 56 13 14 cents 35 28 60 90 16 cents 40 25 72 87 20 cents 21 76 83 24 cents 50 18 80 80 28 cents 55 15 82 78 EXHIBIT 6-1 The Sugar Trade between Tartar and Plaque Before trade, sugar sells in Tartar for 12 cents a pound and in Plaque for 24 cents per pound. When trade is allowed, businesses will buy sugar cheaply in Tartar and sell it in Plaque. The result with free trade will be that Tartar exports 15 pounds of sugar, Plaque imports 15 pounds of sugar, and the price is the same in the two countries at 16 cents per pound. If trade is only partly open between the countries, it will lead to an outcome between the free-trade and no-trade possibilities
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