Consider the following supply and demand diagram shown for a small domestic country.Note that at the world free-trade price of P* illustrated in the diagram,there are imports of Q₁ - Q₀.
If a government wanted more tariff revenue,given the same tariff,t,would it desire elastic or inelastic demand of the imported good? Explain.Be sure to illustrate your explanation with an appropriate diagram.

Question

Consider the following supply and demand diagram shown for a small domestic country.Note that at the world free-trade price of P* illustrated in the diagram,there are imports of Q₁ - Q₀.

If a government wanted more tariff revenue,given the same tariff,t,would it desire elastic or inelastic demand of the imported good? Explain.Be sure to illustrate your explanation with an appropriate diagram.

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The Answer of Consider the following supply and demand diagram shown for a small domestic country.Note that at the world free-trade price of P* illustrated in the diagram,there are imports of Q₁ - Q₀. If a government wanted more tariff revenue,given the same tariff,t,would it desire elastic or inelastic demand of the imported good? Explain.Be sure to illustrate your explanation with an appropriate diagram.

Consider the Following Supply and Demand Diagram Shown for a Small