Macroeconomics 12th Edition by Michael Parkin

تمرين 4

Use the information on the U.S. wholesale market for roses in Problem 1 to
a. Explain who gains and who loses from free international trade in roses compared to a situation in which Americans buy only roses grown in the United States.
b. Calculate the value of the roses imported into the United States.
Problem 1
Use the following data to work Problem.
Wholesalers buy and sell roses in containers that hold 120 stems. The table provides information about the wholesale market for roses in the United States. The demand schedule is the wholesalers' demand and the supply schedule is the U.S. rose growers' supply.

Wholesalers can buy roses at auction in Aalsmeer, Holland, for $125 per container.
Problem
a. Without international trade, what would be the price of a container of roses and how many containers of roses a year would be bought and sold in the United States
b. At the price in your answer to part (a), does the United States or the rest of the world have a comparative advantage in producing roses