Title: The following diagram shows a country's domestic demand and supply curves (Ddom and Sdom) for a ...
Post by: zar on May 19, 2020
The following diagram shows a country's domestic demand and supply curves (Ddom and Sdom) for a product. Assume that the country is a price taker, facing a given world price of PW. Part of demand is satisfied by imports. The world supply curve to the country is given by SW (remember, the country is a price taker). A tariff is then imposed on the product whose amount is shown by the vertical difference between SW and SW+t.
As a result of the tariff, imports will
▸ Decrease from Q4 — Q1 to Q3 — Q2.
▸ Decrease from Q4 to Q5.
▸ Increase from Q1 to Q2.
▸ Increase from Q3 — Q2 to Q4 — Q1.
As a result of the tariff, imports will
▸ Decrease from Q4 — Q1 to Q3 — Q2.
▸ Decrease from Q4 to Q5.
▸ Increase from Q1 to Q2.
▸ Increase from Q3 — Q2 to Q4 — Q1.
Title: The following diagram shows a country's domestic demand and supply curves (Ddom and Sdom) for a ...
Post by: vvnluu on May 19, 2020
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