As consumers how would you feel if suddenly apples coming in from Brazil cost $2.00 each while smaller less de

Question

As consumers how would you feel if suddenly apples coming in from Brazil cost $2.00 each while smaller less delicious apples from your own country had a price tag of $1.00. Before, as a consumer you could purchase any apple in the store for about 25 cents each?

Any guesses on how this applies to the concept of a trade bloc?

Answer 1

It's the American Government 's policy to promote free trade .
If we put a tax on imported apples from Brazil , then the Brazilians will put a tax on an American item.

I'm sure there are some great apples in the States as well, so let the market go it's natural course.

Answer 2

Most likely consumers would no longer buy apples from Brazil for $2.00 because th demand is elastic.

It sounds like in this case you are outlining a trade bloc or tarrif on the Brazillian apples of @$1.75

This would essentially block the apples from comming from Brazil, and people would eat domestic apples.