Compared to an open economy without a tariff, the amount of imported sugar will drop from _____ tons to _____ tons after the tariff is imposed.

Question

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At the world price of $1,000 per ton, the quantity demanded domestically is 100 tons per year, and the quantity supplied domestically is 20 tons per year, implying that the country imports 80 tons per year. With the tariff, the price of sugar becomes $2,000 per ton. At that price, the quantity demanded domestically is 80 tons per year, and the quantity supplied domestically is 40 tons per year, implying that the country imports 40 tons per year.

Compared to an Open Economy Without a Tariff, the Amount