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Hi Tutor, I need help on this: Supply Price of Computers ($) S domestic Demand Tariff Amount 1,000 . . . . New Domestic Equilibrium
Hi Tutor, I need help on this:
Supply Price of Computers ($) S domestic Demand Tariff Amount 1,000 . . . . New Domestic Equilibrium World Price + Tariff 900 . . . CALCULATIONS 800 World Price . . . Domestic Quantity Supplied 130 Imports Domestic Quantity Demanded 170 Ddomestic Level of Imports 40 0 110 170 130 190 Tariff Amount $100 Quantity of Computers Tariff Revenue $4,000Instructions: Manipulate the settings in the interactive tool as indicated. and observe the resulting changes in the tool to answer the following questions: Suppose that in the country represented in the above graph, trade is currently unregulated. The government imposes a $100 tariff on this product. As a result ofthis tariff, the price Q , the quantity purchased by domestic buyers 0 , and the quantity sold by domestic sellers increases a. As shown on the graph, imports fall to 130 9 unitsStep by Step Solution
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