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)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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