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Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table below (quantities in thousands). Quantity Supplied Quantity
Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table below (quantities in thousands). Quantity Supplied Quantity supplied Price ($) Quantity Demanded (before tariff) (after tariff) 10,509 11, 909 189 109 11, 509 168 128 12,909 146 148 12,509 168 13,908 188 13,508 208 14,908 60 220 a) The present equilibrium price is $ and quantity is thousand . b) Suppose that the Canadian government imposes a $3.000 per car tariff on imported Japanese cars. Show the new supply in the last column above. c) The new equilibrium price is $ and quantity is thousand. d) The total revenue received by the government will be $ million. e) Assume, instead, that the government imposes an import quota of 80,000 cars. The new equilibrium price is $ and quantity is[ thousand. f) Does the government now receive any revenue? [(Click to select) v ]
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