The table that follows has domestic supply and demand information for gizmos.Graph the supply and demand curves.Suppose there is free trade and the world price is $2.What would happen to the level of imports if a $1 tariff were placed on them? How much tax revenue would be collected? What effect would placing a $3 tariff have on imports?
Price
Quantity Demanded
Quantity Supplied
$1
11
1
$2
10
2
$3
9
3
$4
8
4
$5
7
5
$6
6
6
$7
5
7
$8
4
8
$9
3
9
$10
2
10
$11
1
11

Question

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The Answer of The table that follows has domestic supply and demand information for gizmos.Graph the supply and demand curves.Suppose there is free trade and the world price is $2.What would happen to the level of imports if a $1 tariff were placed on them? How much tax revenue would be collected? What effect would placing a $3 tariff have on imports?
Price
Quantity Demanded
Quantity Supplied
$1
11
1
$2
10
2
$3
9
3
$4
8
4
$5
7
5
$6
6
6
$7
5
7
$8
4
8
$9
3
9
$10
2
10
$11
1
11

The Table That Follows Has Domestic Supply and Demand Information