Figure 7-2 Price (dollars per pound) $3.00 2.50 1.75 0.500 0 $6 million. $21 million. 15 $30 million. 24 $36 million. 30 36 U.S. supply Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 7-2 shows the impact of this tariff. Pw+Tariff World price, Pw U.S. demand Refer to Figure 7-2. If the tariff was replaced by a quota which limited coffee imports to 12 million pounds, the amount of revenue received by coffee importers would equal 45 Quantity of coffee (millions of pounds)
Figure 7-2 Price (dollars per pound) $3.00 2.50 1.75 0.500 0 $6 million. $21 million. 15 $30 million. 24 $36 million. 30 36 U.S. supply Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 7-2 shows the impact of this tariff. Pw+Tariff World price, Pw U.S. demand Refer to Figure 7-2. If the tariff was replaced by a quota which limited coffee imports to 12 million pounds, the amount of revenue received by coffee importers would equal 45 Quantity of coffee (millions of pounds)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 6CQQ
Related questions
Question
6
![Figure 7-2
Price
(dollars
per pound)
$3.00
2.50
1.75
0.50
oo
0
Ⓒ$6 million.
$21 million.
15
Suppose the U.S. government imposes a $0.75 per pound tariff on coffee
imports. Figure 7-2 shows the impact of this tariff.
$30 million.
24 30 36
Refer to Figure 7-2. If the tariff was replaced by a quota which limited coffee
imports to 12 million pounds, the amount of revenue received by coffee
importers would equal
$36 million.
U.S. supply
Pw+Tariff
- World price, Pw
U.S. demand
45 Quantity of coffee
(millions of pounds)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4fc848ed-38fd-4dc3-a815-2a81dd8b189b%2F860191dd-aa72-4152-9339-acffa2b0e963%2Fcny4lghc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Figure 7-2
Price
(dollars
per pound)
$3.00
2.50
1.75
0.50
oo
0
Ⓒ$6 million.
$21 million.
15
Suppose the U.S. government imposes a $0.75 per pound tariff on coffee
imports. Figure 7-2 shows the impact of this tariff.
$30 million.
24 30 36
Refer to Figure 7-2. If the tariff was replaced by a quota which limited coffee
imports to 12 million pounds, the amount of revenue received by coffee
importers would equal
$36 million.
U.S. supply
Pw+Tariff
- World price, Pw
U.S. demand
45 Quantity of coffee
(millions of pounds)
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