Assume a hypothetical city in the United States at the start of the pandemic consumed 250 boxes of surgical gowns at a price of $120 per box. As the pandemic spread and U.S. demand surged, the United States removed the pre pandemic tariffs on imported medical supplies. Which of the following statements about the city's consumption of surgical gowns during the pandemic would be correct, based on the graph below? The Impact of a Tarifr Price S Pr-B120 T Da o Imports with tar Darn 100 160 260 30 1.000 6,000 10,000 Quantity (Sugical Gow Correct Answer(s) Government revenue will fall by $2,000. The new equilibrium quantity will be 5,000 boxes. The supply curve will shift to the left. The new equilibrium price for a box of gowns will be $100. The removal of the tariff will increase demand. Incorrect Answer(s)
Assume a hypothetical city in the United States at the start of the pandemic consumed 250 boxes of surgical gowns at a price of $120 per box. As the pandemic spread and U.S. demand surged, the United States removed the pre pandemic tariffs on imported medical supplies. Which of the following statements about the city's consumption of surgical gowns during the pandemic would be correct, based on the graph below? The Impact of a Tarifr Price S Pr-B120 T Da o Imports with tar Darn 100 160 260 30 1.000 6,000 10,000 Quantity (Sugical Gow Correct Answer(s) Government revenue will fall by $2,000. The new equilibrium quantity will be 5,000 boxes. The supply curve will shift to the left. The new equilibrium price for a box of gowns will be $100. The removal of the tariff will increase demand. Incorrect Answer(s)
Chapter9: The Physicians’ Services Market
Section: Chapter Questions
Problem 1QAP
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Question
![Assume a hypothetical city in the United States at the start of the pandemic
consumed 250 boxes of surgical gowns at a price of $120 per box. As the
pandemic spread and U.S. demand surged, the United States removed the pre
pandemic tariffs on imported medical supplies.
Which of the following statements about the city's consumption of surgical
gowns during the pandemic would be correct, based on the graph below?
The Impact of a Tariff
Price
(P-120
Tarit
P-S100
PS
Dado
Imports with
atart
Da
100
150
260
300
1,000 6,000
10,000
Quantity
(Sugical Gon
Correct Answer(s)
Government revenue will fall by $2,000.
The new equilibrium quantity will be 5,000 boxes.
The supply curve will shift to the left.
The new equilibrium price for a box of gowns will be $100.
The removal of the tariff will increase demand.
Incorrect Answer(s)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F523fb81b-ccdb-4647-b8df-b4c03988a2ae%2Fe16d202b-866e-497d-96ec-0c5de336882b%2Fw5htub_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume a hypothetical city in the United States at the start of the pandemic
consumed 250 boxes of surgical gowns at a price of $120 per box. As the
pandemic spread and U.S. demand surged, the United States removed the pre
pandemic tariffs on imported medical supplies.
Which of the following statements about the city's consumption of surgical
gowns during the pandemic would be correct, based on the graph below?
The Impact of a Tariff
Price
(P-120
Tarit
P-S100
PS
Dado
Imports with
atart
Da
100
150
260
300
1,000 6,000
10,000
Quantity
(Sugical Gon
Correct Answer(s)
Government revenue will fall by $2,000.
The new equilibrium quantity will be 5,000 boxes.
The supply curve will shift to the left.
The new equilibrium price for a box of gowns will be $100.
The removal of the tariff will increase demand.
Incorrect Answer(s)
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