Trade Restrictions – Tariffs.
I’m studying for my Economics class and need an explanation.
/0x4*
Trade Restrictions – Tariffs
Directions: Answer the questions below based on the graph.
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 $2.00 is imposed on foreign goods?
