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Price (dollars per pound) U.S. supply $3,00 2.50 Pw + Tariff 1.75 World price, Pw U.S. demand 0.50 15 24 30 36 45 Quantity of

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Price (dollars per pound) U.S. supply $3,00 2.50 Pw + Tariff 1.75 World price, Pw U.S. demand 0.50 15 24 30 36 45 Quantity of coffee (millions of pounds) Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 7-2 shows the impact of this tariff. Refer to Figure 7-2. Without the tariff in place, the quantity supplied by firms in the United States equals: 24 million pounds of coffee. 30 million pounds of coffee. O 45 million pounds of coffee. 15 million pounds

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