Exhibit 19.4

-Refer to Exhibit 19.4,which shows the supply of and the demand for baseballs in the United States.If the world price is $3 per baseball and a tariff of $1 per baseball is imposed,then the number of baseballs imported is _____

Question

Exhibit 19.4
 
-Refer to Exhibit 19.4,which shows the supply of and the demand for baseballs in the United States.If the world price is $3 per baseball and a tariff of $1 per baseball is imposed,then the number of baseballs imported is _____

Quizplus · Accepted Answer

With a tariff of $1 per baseball, the domestic price of baseballs will be $4 ($3 + $1). At this price, the quantity demanded will be 6,000 baseballs and the quantity supplied will be 8,000 baseballs. Therefore, the number of baseballs imported will be 8,000 - 6,000 = 2,000 baseballs.

Exhibit 19.4 -Refer to Exhibit 19.4,which Shows the Supply of and the Supply