Suppose that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition. Assume that the United States is a price taker in the world auto market. The following graph shows the U.S. auto market, the world price before the tariff (PW), and the world price after the tariff (PW +T).

# 1:60 PM #2 cdg Domestic supply A PRICE of Autos B Put T C D ! E 'F Pw G Domestic Demand Q Q2 3 Q4 QUANTity of Autos