Question

Price (dollars per pound) 13- Sus 12- 11- The graph shows the market for lobster in the United States. The world price of lobster is $6 a pound. Suppose the U.S. government imposes a tariff of $1 a pound on lobster imported into the United States. Draw a line to show the price of lobster in the United States. Label it U.S. price. Draw a point to show the quantity of lobster supplied by U.S. producers and the price at which they sell the lobsters. Label it 1 Draw a point to show the quantity of lobster bought by U.S. consumers and the price they pay. Label it 2. The tariff revenue collected by the U.S. government is $ million 10 9- 8- 7- >>> Remember that the quantity given on the x-axis is in millions of pounds. 6 World price 5- 4 Dus 0.0 5.0 1.0 2.0 3.0 4.0 Quantity (millions of pounds per year) >>> Draw only the objects specified in the question.

Answer 1

NOTE: Quantity of imports fell from 2 million to 1 million post tariff

Price ($1 pound) Sus 2 7 U.S. Price (W') Would price Dus D 1.5 2:53 (millions Quantity of pounds/ year) Gout imposes a triff of $1 pe pound : As a result, would price shifts upward to w $ 77 pound Us produce Caftu tauiff million Quaulity of lobster supplied by U.S. produces (before touiff) = 1 million Quantity of of lobsle supplied by Quantity of bought by before tauiff which gets reduced to 2'5 million pest tauiff. Tault Revenue colleted by gout region hobstey US consumes was 3 million shaded 1x215-1-5) (1 million $ Scanned with CamScanner CS Scanned with CamScanner