Question:

From Figure 8-4, determine the effect of a 33% import tariff on commodity X. (found on pg 341 of text listed at top of assignment)

*special instructions: the tariff-inclusive price will be $3(1 + .33) = $4. What are the impacts of tariff on domestic consumption, domestic production, imports, and government’s tariff revenue? Please show the numbers, for example, the domestic consumption will decrease from 600X to 500X.