Exhibit 19-5
-In Exhibit 19-5, with a tariff of $0.50 per unit and a world price of $1.00,

Name: Exhibit 19-5 -In Exhibit 19-5, with a tariff of $0.50 per unit and a world price of $1.00,
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Question

Exhibit 19-5 
-In Exhibit 19-5, with a tariff of $0.50 per unit and a world price of $1.00,

Quizplus · Accepted Answer

With a tariff of $0.50 per unit and a world price of $1.00, the domestic price becomes $1.50. If the domestic supply at $1.50 is less than domestic demand, the difference will be imported. The problem suggests that 25 units will be imported under these conditions.

Exhibit 19-5 -In Exhibit 19-5, with a Tariff of $0.50 Per Unit