Bangladesh

The graph above shows the demand and supply of socks for the country of Bangladesh.

a. If trade is avoided, Bangladesh consumes _____ pairs of socks at a price of _____ per socks.

b. With free trade, for a world price of $4 per pair of socks, Bangladesh is producing _____pairs of socks.

c. With free trade, for a world price of $4 per pair of socks, Bangladesh is consuming _______ pairs of socks.

d. With free trade, for a world price of $4 per pair of socks, Bangladesh is importing _________pairs of socks.

e. If the world price is $4 per sock, and the government of Bangladesh imposes a tariff of $1, Bangladesh produces ____________ and imports __________pairs of socks.

f. If the world price is $4 per pair of socks, and the government of Bangladesh imposes a tariff of $1, how much tariff revenue will the Bangladesh government collect? _____ .

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