Question
The demand for sugar in the United States is characterized by the equationP = 13 - Q/1000, where Q is tons of sugar. U.S. producers
The demand for sugar in the United States is characterized by the equationP = 13 - Q/1000,
where Q is tons of sugar. U.S. producers of sugar will supply sugar to the U.S. market based on the equationP = 4 + Q/200.
In response to demands to buy American, the U.S. government imposes a tariff, a tax on foreign imports, of $2 per yard of sugar. On a new graph, add the information you need to answer the following questions.
What will be the new market price of sugar in the United States?
How much sugar will American consumers now purchase?
How much sugar will American producers sell?
How much sugar will Americans import from the rest of the world?
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