Suppose that at the same time that Malta begins trading with the rest of the world, a tariff of $2 per pencil is imposed on import in Malta. The total tariff revenue collected will equal:

__________ has the comparative advantage in Potions and ___________ has the comparative advantage in Spells.

Suppose that a famous rock band is deciding how much to charge for the tickets to their new concert. For their last performance, the band charged $60 per ticket and they sold 10 thousand tickets. The band estimates that the price elasticity of demand is 1.2. If they are correct, which of the following prices should they charge per ticket so that they can obtain a higher revenue?

What is the change in Malta’s total surplus from opening up to trade with the rest of the world?

What is consumer surplus in the market?

What is the change in Malta’s producer surplus from opening up to trade with the rest of the world?

Refer to the following table for questions 9-10. Reservation Prices and Costs in a small market for AI Chips Name of Consumer Reservation Price for 1 AI Chip (dollars)   Name of Seller Reservation Price for 1 AI Chip (dollars)  Alice 9   Apples 1 Ben 8   Bell 2 Carol 7   Chrome 3 Daniel 6   Dell 4 Ellen 5   Envy 5 Francis 4   Frost 6 Gwen 3   Groove 7 Hugo 2   HP 8 Ivonne 1   Intel 9 Jaimie 0   Jolt 10

Consider that a new technology is developed that makes the AI chips production twice as efficient. AI chips are used to produce computers. What will be the effect to the equilibrium quantity and price of computers?

Suppose that at the same time that Malta begins trading with the rest of the world, a tariff of $1 per pencil is imposed on imports in Malta. The total tariff revenue collected will equal:

The opportunity cost for Hermione to make one more Spell equals ____ , and this equals the slope of the _______.