Refer to the diagram to the right. The closed-economy 40 equilibrium price is $14. The world price is $8. What is the quantity of imports at the world price of $8 plus a $2 tariff? Imports 30 units. (Enter your response as a whole number.) How much tariff revenue is generated by the $2 tariff? Tariff revenue = $(Enter your response as a whole number) 20- 18- 16- 14- 12- 10- 8- 6- 4- Price, P 10 20 30 A Shome 40 50 60 70 80 Quantity Pw* Pw Drome 90 100

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Chapter1: Making Economics Decisions
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Refer to the diagram to the right. The closed-economy 40
equilibrium price is $14. The world price is $8.
What is the quantity of imports at the world price of $8 plus a $2
tariff?
Imports 30 units. (Enter your response as a whole number)
How much tariff revenue is generated by the $2 tariff?
Tariff revenue $ (Enter your response as a whole number)
20-
18-
16-
14-
12-
10-
8-
6-
4-
Price, P
20
A
Shome
30 40 50 60 70 80
Quantity
Pw+t
Pw
Drome
90 100
Transcribed Image Text:Refer to the diagram to the right. The closed-economy 40 equilibrium price is $14. The world price is $8. What is the quantity of imports at the world price of $8 plus a $2 tariff? Imports 30 units. (Enter your response as a whole number) How much tariff revenue is generated by the $2 tariff? Tariff revenue $ (Enter your response as a whole number) 20- 18- 16- 14- 12- 10- 8- 6- 4- Price, P 20 A Shome 30 40 50 60 70 80 Quantity Pw+t Pw Drome 90 100
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