Business, 09.03.2020 23:54 MorallyGray

Initially, there are no import restrictions on kiwi fruit. The minimum supply price for domestic producers is $0.20, while the minimum supply price for foreign suppliers is $0.08. Each supply curve is linear, with a slope of $0.01 per million pounds. In the initial equilibrium, the price is $0.18 and the quantity is 10 million pounds. The demand curve has a vertical intercept of $0.38 and a slope of minus $0.02 per million pounds.
(a) Draw a graph showing the initial equilibrium.
(b) Suppose imports are banned, raising the price to $0.30. Draw a graph to show the new equilibrium and identify the new equilibrium quantity.
(c) Compute the consumer surplus before the import ban and after the ban.
(d) Suppose the import ban protects 10 jobs in the kiwi fruit industry. What is the cost to consumers for each job protected?

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