Refer to the information provided in Figure 18.4 below to answer the questions that follow. Figure 18.4
-Refer to Figure 18.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. If the tariff is raised so that it now equals $10, tariff revenue in this country will be

Question

Refer to the information provided in Figure 18.4 below to answer the questions that follow.  Figure 18.4
-Refer to Figure 18.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. If the tariff is raised so that it now equals $10, tariff revenue in this country will be

Quizplus · Accepted Answer

When the tariff raises the price to equal the domestic price ($20), there will be no imports because the price of imported goods with the tariff equals the domestic price. Therefore, there will be no tariff revenue collected.

Refer to the Information Provided in Figure 18