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PA 835 $14 $10 $7 - . - - World Price $2 310 470 650 780855 6 The gure above shows the domestic demand and supply for coffee in the United States. Under free trade the price for a pound of coffee is $7, but a $3 import tariff is imposed on imported coffee. Under free trade, domestic producers will produce pounds of coffee, while with the tariff, domestic producers will produce pounds of coffee