Using the following graph to answer the following questions. If the United States imposes a tariff of a $1.25 on T-shirts. 1. How many T-shirts does the United States import? 2. How much is the tariff revenue? 3. Which area is the consumer surplus? 4. Which area is the U.S. producer surplus? 5. Which area shows the loss in economic surplus? Price (dollars per T-shirt) 15 10 10 415 10 20 20 Tariff revenue 30 Imports with tariff 40 50 60 Sus Tariff World price Dus 70 80 Quantity (millions of T-shirts per year)
Using the following graph to answer the following questions. If the United States imposes a tariff of a $1.25 on T-shirts. 1. How many T-shirts does the United States import? 2. How much is the tariff revenue? 3. Which area is the consumer surplus? 4. Which area is the U.S. producer surplus? 5. Which area shows the loss in economic surplus? Price (dollars per T-shirt) 15 10 10 415 10 20 20 Tariff revenue 30 Imports with tariff 40 50 60 Sus Tariff World price Dus 70 80 Quantity (millions of T-shirts per year)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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