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47. Consider Figure 6.3. In the absence of trade, Sweden’s equilibrium price and quantity of apples would be: a. $0.60 and 22 pounds b. $0.60 and 14 pounds c. $1.00 and 18 pounds d. $1.40 and 14 pounds 48. Consider Figure 6.3. Suppose the rest of the world can supply apples to Sweden at a price of $0.60 per pound. With free trade, Sweden produces _______ pounds of apples and imports _______ pounds of apples. 10
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Chapter 6: Nontariff Trade Barriers 49. Consider Figure 6.3. At the free-trade price of $0.60 per pound, Sweden’s consumer surplus totals $_______ and producer surplus totals $_______. 50. Consider Figure 6.3. If SSweden+Quotarepresents the supply schedule after a quota is levied, Sweden’s imports will equal: 51. Consider Figure 6.3. After the quota is levied, the price of apples in Sweden will equal: a. $0.60 per pound b. $1.00 per pound c. $1.40 per pound d. $1.80 per pound 52. Consider Figure 6.3. As a result of the quota, Sweden’s consumer surplus: 53. Consider Figure 6.3. The quota leads to a deadweight welfare loss for Sweden of an amount equaling: 54. Consider Figure 6.3. The quota’s revenue effect equals: 55. Consider Figure 6.3. Assume that Swedish import companies behave as competitive buyers while foreign export companies behave as a monopoly seller. Compared to free trade, Sweden’s import quota results in domestic welfare: a. Gains totaling $3.20 b. Gains totaling $4.80 c. Losses totaling $3.20 d. Losses totaling $4.80 11