itedKi
gdomimportsteacupsfromothercou
triesthe
UKproducersofteacupsarebetteroffa
dUKco
sumersofteacupsareworseoffasaresultoftrade
ANSF
DIF2
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPTradeEco
omicwelfare
MSCApplicative
12IfBelgiumexportschocolatetotherestoftheworldthe
Belgia
chocolateproducersbe
efitfromhigherproducersurplusBelgia
chocolateco
sumersareworseoffbecauseoflowerco
sumersurplusa
dtotalsurplusi
Belgiumi
creasesbecauseoftheexportsofchocolate
ANST
DIF2
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPTradeEco
omicwelfare
MSCApplicative
13I
pri
cipletradeca
makea
atio
betteroffbecausethegai
stothewi
ersexceedthelossestothelosers
ANST
DIF1
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPTradeEco
omicwelfare
MSCI
terpretive
14SupposetheIvoryCoastasmallcou
tryimportswheatattheworldpriceof4perbushelIftheIvoryCoastimposesatariffof1perbushelo
importedwheatthe
otherthi
gsequalthepriceofwheati
IvoryCoastwilli
creasebutbylesstha
1
ANSF
DIF2
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPTariffsPrices
MSCI
terpretive
15Thesmalleco
omyassumptio
is
ecessarytoa
alyzethegai
sa
dlossesfromi
ter
atio
altrade
ANSF
DIF1
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPI
ter
atio
altradeAssumptio
s
MSCI
terpretive
16Thegreatertheelasticitiesofsupplya
ddema
dthesmallerarethegai
sfromtrade
ANSF
DIF3
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPGai
sfromtradePriceelasticitiesofdema
da
dsupply
MSCApplicative
17Ifatariffisplacedo
watchesthepriceofbothdomestica
dimportedwatcheswillrisebytheamou
tofthetariff
ANST
DIF2
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPTariffsPrices
MSCI
terpretive
18Whe
agover
me
timposesatariffo
aproductthedomesticpricewillequaltheworldprice
ANSF
DIF2
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPTariffsPrices
MSCI
terpretive
19Atariffi
creasesthequa
tityofimportsa
dmovesthemarketfartherfromitsequilibriumwithouttrade
ANSF
DIF2
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPTariffsImports
MSC
Applicative
f596
Chapter9Applicatio
I
ter
atio
alTrade
20Whe
acou
tryaba
do
s
otradepoliciesi
favoroffreetradepoliciesa
dbecomesa
importerofsteelthe
thedomesticpriceofsteelwilli
creaseasaresult
ANSF
DIF2
REF92
NATA
alytic
LOCGai
sfromtradespecializatio
a
dtrade
TOPImportsPrices
MSC
I
terprer