Calculating equilibrium price and quantity.
The yearly demand for coffee by the U.S consumers is Q = 250 -10P. The world producers can harvest and ship coffee to U.S. distributers at a constant marginal (=average) cost of $8 per pound. The U.S. distributors can in turn distribute coffee for a constant $2 per pound. The U.S. coffee is competitive. Congress is considering a tariff on coffee imports of $2 per pound.
If there is no tariff, explain how much do consumers pay for a pound of coffee? What is the quantity demanded?