Trade Restrictions - Tariffs Directions: Answer the questions below based on the graph. Price $11.00 $7.50 $6.00 $4.00 4 6 9 12 15 Quantity 1. How many units will the domestic firms produce without trade? 2. How many units will the domestic firms produce without a tariff if the foreign producer can sell the product at a $4 price? 3. How many units will the foreign firms produce / sell if a government tariff of $2.00 is imposed on foreign goods? 4. What will be the total government revenues if a tariff of $2.00 is imposed on foreign goods? 5. What will be the total deadweight losses if a tariff of s2.00 is imposed on foreign goods?

Trade Restrictions - Tariffs Directions: Answer the questions below based on the graph. Price $11.00 $7.50 $6.00 $4.00 4 6 9 12 15 Quantity 1. How many units will the domestic firms produce without trade? 2. How many units will the domestic firms produce without a tariff if the foreign producer can sell the product at a $4 price? 3. How many units will the foreign firms produce / sell if a government tariff of $2.00 is imposed on foreign goods? 4. What will be the total government revenues if a tariff of $2.00 is imposed on foreign goods? 5. What will be the total deadweight losses if a tariff of s2.00 is imposed on foreign goods?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: International Trade

Section: Chapter Questions

Problem 2WNG

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Similar questions

Why might the unsafe consumer products argument be a more effective strategy (from the perspective of the importing country) than using tariffs or quotas to restrict imports?
Name and define three policy tools for enacting protectionism.

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