Figure 18.5
-For the good in Figure 18.5,with the tariff,the people in the country will buy

Question

Quizplus · Accepted Answer

With the imposition of a tariff, the domestic price of the good increases, leading consumers to reduce their consumption from the level they would have chosen at the world price without the tariff. Therefore, they will buy the quantity at Q₄, which is less than the quantity they would have bought without the tariff (Q₅) but more than the quantity domestically produced without the tariff (Q₁ or Q₂).

Figure 18.5 -For the Good in Figure 18.5,with the Tariff,the People in People