The figure below shows the US domestic supply and demand for CD-ROM drives. The world price is $15 (per million CD-ROM drives). Price ($) 25 15 0 3 U.S. market 6 9 SUS. 12 DU.S. Q

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
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The figure below shows the US domestic supply and demand for CD-ROM drives. The world price is $15 (per million CD-ROM
drives).
Price ($)
25
15
0
$25
b. $15
$10
3
a.
U.S. market
C.
d. $0
6
9
SU.S.
12
Millions of CD-ROM drives
Suppose the US implements a tariff on imports of CD-ROM drives. After the tariff is implemented, the US imports 3 million CD-
ROM drives. What is the amount of the tariff?
DU.S.
Hint: What does it mean/ look like on the graph for the US to import 3 million units?
Q
Transcribed Image Text:The figure below shows the US domestic supply and demand for CD-ROM drives. The world price is $15 (per million CD-ROM drives). Price ($) 25 15 0 $25 b. $15 $10 3 a. U.S. market C. d. $0 6 9 SU.S. 12 Millions of CD-ROM drives Suppose the US implements a tariff on imports of CD-ROM drives. After the tariff is implemented, the US imports 3 million CD- ROM drives. What is the amount of the tariff? DU.S. Hint: What does it mean/ look like on the graph for the US to import 3 million units? Q
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