microbook_3e-page42

microbook_3e-page42 - sell more and charge higher price for...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Tariff x When US imports good, domestic demand exceeds domestic supply x Imposition of tariff drives a wedge between world price and domestic price x After tariff imposed, domestic producers can
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: sell more and charge higher price for their product x Consumers however pay higher price and cut qty. demanded x Government receives revenue from tariff Page 42...
View Full Document

Ask a homework question - tutors are online