In general, who will benefit as the result of a tariff?
I. Domestic producers
II. Domestic consumers
III. The domestic government
Select one:
a. both II and III
b. both I and III
c. I only d. II only
d. All of the above are correct.
In general, who will benefit as the result of a tariff?
I. Domestic producers
II. Domestic consumers
III. The domestic government
Select one:
a. both II and III
b. both I and III
c. I only d. II only
d. All of the above are correct.
Related textbook solutions
Related questions
Suppose the following table reflects the domestic supply and demand for compact discs (CDs):
| Price ($) | 18 | 16 | 14 | 12 | 10 | 8 | 6 | 4 |
| Quantity supplied | 8 | 7 | 6 | 5 | 4 | 3 | 2 | 1 |
| Quantity demanded | 2 | 4 | 6 | 8 | 10 | 12 | 14 | 16 |
(a) Graph supply and demand given these market conditions.
(i) Identify the equilibrium price. $
(ii) Identify the equilibrium quantity. CDs
(b) Now suppose that foreigners enter the market, offering to sell an unlimited supply of CDs for $6 apiece. Draw a new line representing the foreign supply.
Use the graph to answer the questions below.
(i) Identify the new market price.
(ii) Domestic consumption.
(iii) Domestic production.
(c) If a tariff of $3 per CD is imposed, what will be
(i) The market price?
(ii) Domestic consumption?
(iii) Domestic production?
