The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100 and this economy is open to trade.If a tariff of $50 per unit is placed on DVD player imports,the quantity of DVD players demanded domestically will change from _________ with no tariff to __________ with the tariff.

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Quizplus · Accepted Answer

Without the tariff, the price is $100, so demand is 280 units. With a $50 tariff, the price becomes $150, so demand is 270 units.

The Demand for DVD Players in a Country Is Given