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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 Quantity Supplied
Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table below (quantities in thousands). Quantity Quantity Supplied Quantity supplied Price ($) Demanded (before tariff) (after tariff) 9 , 000 200 80 10, 000 180 100 11, 000 160 120 12, 000 140 140 13, 000 120 160 14, 000 100 180 15, 000 80 200 16, 000 60 220 a) The present equilibrium price is $ and quantity is thousands. b) Suppose that the Canadian government imposes a $2,000 per car tariff on imported Japanese cars. Show the new supply in the las column above. c) The new equilibrium price is $ and quantity is thousands. d) The total revenue received by the government will be $ million. e) Assume, instead, that the government imposes an import quota of 120,000 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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