tariff Flashcards
1
Q
what is a tariff
A
-a tax imposed by one country on goods and services from another country
2
Q
graph of tariff
A
-axis: price and quantity
-s world horizontal, normal s demand and d
-quanityt supplied low, quantity demanded rise(number of imports), p world at sw
-sw + tarriff moves it up, rising price
-domestic supply extends, domestic demand contracts
-imports fallen
-middle section = revenue
-right middle = dwl of cs
-left middle = dwl of world efficiency
