(Figure: Market for TVs 2) Suppose that the world price of TVs is $500, and the government imposes a $100 tariff. According to the figure, the new price domestic consumers pay for a TV is:

Question

Quizplus · Accepted Answer

The imposition of a $100 tariff shifts the domestic supply curve to the left by $100, resulting in a new equilibrium price of $600. Domestic consumers now pay $600 for a TV, which includes the $500 world price plus the $100 tariff imposed by the government.

(Figure: Market for TVs 2) Suppose That the World Price