Fill in the blanks to make the following statements correct.
a. A tariff imposed on the import of leather shoes will cause an ________ in the domestic price. Total quantity of leather shoes sold in Canada will ________. Domestic (Canadian) production of leather shoes will ________ and the quantity of shoes imported will ________.
b. The beneficiaries of the tariff described above are ________ because they receive a higher price for the same good and because they receive tariff revenue. The parties that are clearly worse off are ________ because they now pay a higher price for the same good, and ________ because they sell less in the Canadian market.
c. The overall effect of a tariff on the importing country is an ________ in welfare. The tariff creates an ________ loss for the economy.
d. Suppose an import quota restricted the import of leather shoes into Canada to 20 000 pairs per year when the free trade imported amount was 40 000 pairs. The domestic price will ________, total quantity sold in Canada will ________, and domestic production will ________.
e. The beneficiaries of the quota described above are ________ and ________ because they both receive a higher price in the Canadian market. The party that is clearly worse off is ________ because they are now paying a higher price.
f. The overall effect of an import quota on the importing country is an ________ in welfare. The quota imposes an ________ loss for the economy.