Homework Help is Here – Start Your Trial Now!
Business
Economics
Price of good x $2,100 A $1,500 B $1,200 $1,000 L с F G H | J K S U.S. U.S. Market Price World price + Tariff World Price D U.S. 1,000 1,500 2,000 2,500 3,000 Quantity of good x

Price of good x $2,100 A $1,500 B $1,200 $1,000 L с F G H | J K S U.S. U.S. Market Price World price + Tariff World Price D U.S. 1,000 1,500 2,000 2,500 3,000 Quantity of good x

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

5. Diagram below shows domestic U.S. supply and demand for good X. World price is $1,000.  

a. With free international trade, how many units of good X will the U.S. import? __________

 

Suppose the U.S. government now imposes a tariff on good X as shown on the graph. 

b. How many units of good X will the U.S. import after tariff is imposed? _____________

 

c. Calculate government’s revenue as the result of the tariff $_____________ 

 

d. With international trade restriction, how many units of good X will the U.S. consumers demand? __________

 

e. With free international trade, how many units of good X will the U.S. suppliers supply? ___________

 

Price of good x $2,100 A $1,500 B $1,200 $1,000 L с F G H | J K S U.S. U.S. Market Price World price + Tariff World Price D U.S. 1,000 1,500 2,000 2,500 3,000 Quantity of good x
Transcribed Image Text:Price of good x $2,100 A $1,500 B $1,200 $1,000 L с F G H | J K S U.S. U.S. Market Price World price + Tariff World Price D U.S. 1,000 1,500 2,000 2,500 3,000 Quantity of good x
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS