Effects of Free Trade and Restrictions

Help me study for my Economics class. I’m stuck and don’t understand.

Title: Spain Demand and Supply Graph - Description: The graph shows the supply and demand graph of wrenches in Spain. Equillibrium is at 9 wrenches for $7.50.

The graph above shows the demand and supply of wrenches for the country of Spain.

  • If trade is avoided, Spain consumes _____ wrenches at a price of _____ per wrench.
  • With free trade, for a world price of $4 per wrench, Spain is producing _____wrenches.
  • With free trade, for a world price of $4 per wrench, Spain is consuming _______ wrenches.
  • With free trade, for a world price of $4 per wrench, Spain is importing _________wrenches.
  • If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, Spain produces ____________ and imports __________wrenches.
  • If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, how much tariff revenue will the Spain’s government collect?_____

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