To see the effects of a tariff, lets return to the example in which, with free international

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To see the effects of a tariff, let’s return to the example in which, with free international trade, the United States imports T-shirts. The T-shirts are imported and sold at the world price. Then, under pressure from U.S.

garment makers, the U.S. government imposes a tariff on imported Tshirts.

Buyers of T-shirts must now pay the world price plus the tariff.

Several consequences follow in the market for T-shirts. Figure 9.5 illustrates these consequences.



Figure 9.5 The Effects of a Tariff

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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Question Posted: Nov 11, 2024 02:00 AM

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To see the effects of a tariff, lets return to the example in which, with free international

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Foundations Of Microeconomics

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