--%>

Describe price–quantity effects

Describe price–quantity effects of this tariff to

(a) domestic consumers,

(b) domestic producers, and

(c) foreign exporterts

E

Expert

Verified

A tariff of PwP

(a) harms domestic consumers through increasing price from Pw to Pt  and reducing consumption from Qe to Qd;

(b) aids domestic producers through the raise in price from Pw to Pt & the expansion of domestic production from Qa to Qb;

(c) harms foreign exporters through declining exports from QaQe to QbQd.

   Related Questions in Finance Basics

  • Q : Effect of change on equilibrium

    Normal 0 false false

  • Q : Define Claim Schedule Claim Schedule :

    Claim Schedule: It is a request from a state department to the State Controller's Office to distribute payment from a legal appropriation or account for a legal state obligation. The claim agenda recognizes the appropriation or account to be charged,

  • Q : Why riskiness of portfolios is

    Normal 0 false false

  • Q : Question on aggregate supply Normal 0

    Normal 0 false false

  • Q : Question based on imposesing tax Given

    Given equations describe market for widgets                         Demand: P = 10 - Q Supply: P = Q - 4

    Q : Effect of raising funds on rapidly

    Companies along with rapidly growing levels of sales do not require worrying about raising funds from outside the firm. Do you agree or disagree along with this statement? Describe. Disagree. Quickly growing firms require more assets to accom

  • Q : Explain Generally Accepted Accounting

    Generally Accepted Accounting Principles (GAAP): The accounting rules, principles, conventions, and procedures which are employed for accounting and financial reporting. The GAAP for governments are put by the Governmental Accounting Standards Board (

  • Q : Estimation of expected incremental cash

    How do we estimate expected incremental cash flows for proposed capital budgeting project? We estimate expected incremental cash flows for proposed project through estimating the changes in sales and expenses which are incremental to the project

  • Q : Define Federal Fiscal Year Federal

    Federal Fiscal Year (FFY): The twelve month accounting period of the federal government, starting on October 1 and ending the following September 30. For illustration, a reference to FFY 2013 means the period starting October 1, 2012 and ending at Sep

  • Q : Describe EU Normal 0 false false false

    Normal 0 false false