100 Demand Supply 90 70 E 60 50 40 30 Import price 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity of crude oil (millions of barrels)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The graph depicts the market for oil, with the assumption that the United States can import any amount of oil it chooses at the world free trade price.

Adjust the graph to reflect what happens when a 50% import tax is imposed on oil. (graph in the image)

 
Approximately how many million barrels are imported before the tax is imposed?
 
imported oil:_________million barrels
 
Approximately how many million barrels are imported after the tax is imposed?
 
imported oil:________million barrel
100
Demand
Supply
90
70
E 60
50
40
30
Import price
20
10
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Quantity of crude oil (millions of barrels)
Transcribed Image Text:100 Demand Supply 90 70 E 60 50 40 30 Import price 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity of crude oil (millions of barrels)
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