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3) Assume the artic nation of Jasonia is currently engaged in free trade for bananas with the rest of the world, buying or selling bananas at the world price of $2 per kilogram, while the autarky price in Jasonia would be $5 per kilogram. In order to protect workers in the Jasonian banana industry from the unfair competition of countries that can grow bananas outside (cheaters), a tariff of $2 per kilogram is levied on international trade in bananas. a. Who will gain from the banana tariff? b. Show in a graph how much this group will gain from the tariff. c. Who will lose from the banana tariff? d. Show these loses in a graph. e. Show the revenue that the Jasonian government will collect from the banana tariff in a graph. f. How much will this policy hurt the citizens of Jasonia? Show it in a graph.

          3) Assume the artic nation of Jasonia is currently engaged in free trade for bananas with the rest of
the world, buying or selling bananas at the world price of $2 per kilogram, while the autarky
price in Jasonia would be $5 per kilogram. In order to protect workers in the Jasonian banana
industry from the unfair competition of countries that can grow bananas outside (cheaters), a
tariff of $2 per kilogram is levied on international trade in bananas.
a. Who will gain from the banana tariff?
b. Show in a graph how much this group will gain from the tariff.
c. Who will lose from the banana tariff?
d. Show these loses in a graph.
e. Show the revenue that the Jasonian government will collect from the banana tariff in a
graph.
f. How much will this policy hurt the citizens of Jasonia? Show it in a graph.

3) Assume the artic nation of Jasonia is currently engaged in free trade for bananas with the rest of
the world, buying or selling bananas at the world price of 2 per kilogram, while the autarky
price in Jasonia would be5 per kilogram. In order to protect workers in the Jasonian banana
industry from the unfair competition of countries that can grow bananas outside (cheaters), a
tariff of 2 per kilogram is levied on international trade in bananas.
a. Who will gain from the banana tariff?
b. Show in a graph how much this group will gain from the tariff.
c. Who will lose from the banana tariff?
d. Show these loses in a graph.
e. Show the revenue that the Jasonian government will collect from the banana tariff in a
graph.
f. How much will this policy hurt the citizens of Jasonia? Show it in a graph.

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