Suppose a tariff of now the "T-shirt" market is open to international trade. The world price for "T-shirts" is $7. A tariff per shirt is added. P S D Q

Principles of Macroeconomics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter9: Application: International Trade
Section: Chapter Questions
Problem 3CQQ
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Suppose a tariff of now the "T-shirt" market is open to international trade. The world price for "T-shirts" is $7.
A tariff per shirt is added.
P
X
After a tariff is imposed in this market, find the:
7. Add a tariff, like we did in class.
8. Show what happens to the imports on the graph.
9. Show what happens to consumer surplus on the graph.
10. Show what happens to producer surplus on the graph.
Q
Transcribed Image Text:Suppose a tariff of now the "T-shirt" market is open to international trade. The world price for "T-shirts" is $7. A tariff per shirt is added. P X After a tariff is imposed in this market, find the: 7. Add a tariff, like we did in class. 8. Show what happens to the imports on the graph. 9. Show what happens to consumer surplus on the graph. 10. Show what happens to producer surplus on the graph. Q
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