Suppose Country X Imposes a Tariff on Imported Shoes (A) What Happens to the Equilibriun Price of Shoes and Table

question 188

Essay

Suppose country X imposes a tariff on imported shoes. The table below shows the import demand and export supply before and after the tariff. Quantities are in thousands. $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Quantity of } \\\text { Imports } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Exports } \\\text { Supplied }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Exports } \\\text { Supplied with } \\\text { Tariff }\end{array} & \text { Price } \\\hline 200 & 40 & 0 & \\\hline 180 & 60 & 20 & 20 \\\hline 160 & 80 & 40 & 30 \\\hline 140 & 100 & 60 & 40 \\\hline 120 & 120 & 80 & 50 \\\hline 100 & 140 & 100 & 60 \\\hline 80 & 160 & 120 & 70 \\\hline 60 & 180 & 140 & 80 \\\hline\end{array}$$ (A) What happens to the equilibriun price of shoes and the quantity imported after the tariff is imposed? Draw a Jraph to jllustrate your answar.
(B) Suppose the tariff is remcved and replaced writh a quuta that linits imports to ga,000 shaes. What happens to the price of shoes in cauntry X?
(C) When the guverment switched fram a tariff to a qquta, what happened to government reyenue?

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