The world price for baseballs is $24 per dozen, and almost all of them are produced

outside the U.S. Suppose, the U.S. demand curve is QD

=100,000 - 2,000P, where P is

The price per dozen and Q is measured in dozens. The U.S.

domestic supply curve is QS = -

10,000 + 1,000P. Explain in words and graphically.

a. Before a tariff is imposed, what is the U.S. equilibrium

price? Quantity of domestic

consumption? Quantity of domestic production? And the

quantity of imports?

Before a tariff is

imposed the U.S equilibrium price is equal to the world price which is $24.

The Quantity of

Domestic consumption is equal to $52,000.

The Quantity of domestic

production is equal to $14,000.

The quantity of

Imports is equal to $38,000.

b. Congress has decided to help the baseball manufacturing

industry by imposing a tariff

of $6 per dozen. What is the new equilibrium price?

Quantity of domestic consumption

quantity? Quantity of domestic production? And the quantity

of imports?

The new equilibrium

price is equal to the world price added with the tariff which equals to $30.

The quantity of

domestic consumption is now equal to $40,000.

The quantity of domestic

production is $20,000.

The quantity of

Imports is now equal to $20,000.

c. What are the losses to U.S. consumers, gains to U.S.

producers, revenue gained by the

government, and deadweight loss from the tariff? (Answer in

$.)

Under the Tariff

Consumers lose $276,000

Producers gain $102,000

Revenue gained by the

government is $120,000

The Deadweight Loss

from the tariff is $54,000.

d. What quota level would have the equivalent effect on the

price as the $6 tariff?

The purpose of a quota

is to restrict the number of imports to the import level of the tariff that was

created. Since the tariff is $6 the Import would be 20,000 units.

e. What is the deadweight loss from the quota? (Answer in

$.)

The deadweight loss

after the quota is

I need help answering the question graphically and whether the answers I have are correct.