Suppose country X imposes a tariff on imported shoes. The table below shows the import demand and export supply before and after the tariff. Quantities are in thousands.
(A)What happens to the equilibrium price of shoes and the quantity imported after the tariff is imposed? Draw a graph to illustrate your answer.
(B)Suppose the tariff is removed and replaced with a quota that limits imports to 80,000 shoes. What happens to the price of shoes in country X?
(C)When the government switched from a tariff to a quota, what happened to government revenue?
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