Question

9. On the graph below, using Supply and Demand, show what happens if a "large" country implements a tariff in an import industry. Show what happens in the Import-Export market. Draw the necessary demand and supply curves. Be sure to label the axes and any curves. Show where the World Price, the consumer price, and producer price in the market are after the tariffs are implemented. Indicate the areas of Deadweight Loss. (5 points)

Answer 1

supply 56 world Price - Demand To 0 Q2 Q3 Qy Q5 Quantine Import tariff reuser domestic price and і сор со Сашоу соцмаціt Cool acer foreign price Impolut tariff has reduced quantity of impour LA large- importing country is said to be having monopsony power in trade wp-world Price Pp Producer Pricel Cea Consumer Price Price after tariff

Date: / blue shaded areea Yellow Red & - Pink - Consumer weplus Producer sweplus Deadweight loss Tax revenue ley gouemment. Import Quantity before tariff used to be Geld from Q 5 Super Quanting after implementing Domestic producer Consumer County - es in a letter situation eituation now 9essere Ce price ley pa ducing 02 quantity .