Price in dollars Global price before tariff No trade price Domestic price after - tariff 18 13 10 8 Global price after tariff a b 550 more widgets 150 less widgets 400 less widgets 550 less widgets 500 750 C e d Domestic Supply WS tariff WS before tariff WS after tariff Domestic Demand 1,300 L Quantity (number of widgets) In comparison to the import levels before the tariff, this country is importing after tariff:

Price in dollars Global price before tariff No trade price Domestic price after - tariff 18 13 10 8 Global price after tariff a b 550 more widgets 150 less widgets 400 less widgets 550 less widgets 500 750 C e d Domestic Supply WS tariff WS before tariff WS after tariff Domestic Demand 1,300 L Quantity (number of widgets) In comparison to the import levels before the tariff, this country is importing after tariff:

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 4CQQ

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