Price Pc 0 E V K W G X Quantity Multiple Choice y is vy. Sd Sa+Q Refer to the diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product. Sd+ Q is the product supply curve after an import quota is imposed. The size of the import quota Da

Price of Wagons gain by $240 lose by $240 gain by $120 lose by $75 $18.5 8 5 1 0 40 70 90 Domestic Supply World Price Domestic Demand Quantity of Wagons Refer to the figure above. If this country allows free trade in wagons, how much will consumers gain or lose?

One reason why consumers are unlikely to be too upset about tariffs O tariffs are an inexpensive way to create jobs. O most consumers benefit from protection. O the costs are so spread out that no one pays a big share of the total. O consumer losses are not real losses.

PRICE (Dollars per tonne) 1160 Domestic Demand 1110 1060 1010 960 910 860 810 760 710 660 0 20 40 60 80 100 120 140 160 180 QUANTITY (Tonnes of oranges) and is represented by the horizontal black line. satisfy domestic demand as much as possible before any exporting or importing takes place. price of oranges and that there are no transportation or transaction costs associated Domestic Supply A tariff set at this level would raise $ PW 200 If Zambia is open to international trade in oranges without any restrictions, it will import Suppose the Zambian government wants to reduce imports to exactly 40 tonnes of oranges to help domestic producers. A tariff of $ tonnes of oranges. in revenue for the Zambian government. per tonne will achieve this. Q Search this course