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A POLICY THAT REDUCES A COUNTRY’S IMPORTS WOULD LOWER WORLD PRICE

LARGE COUNTRY CASE AND OPTIMAL TARIFF THE ASSUMPTION HERE IS THAT THE IMPORTING COUNTRIES POLICIES CAN IMPACT WORLD PRICES. A POLICY THAT REDUCES A COUNTRY’S IMPORTS WOULD LOWER WORLD PRICE. NO TARIFF. PRICE. PRICE. S. ES. P W. ED. D. IMPORT. IMPORT. QUANTITY. QUANTITY. PRICE. PRICE.

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A POLICY THAT REDUCES A COUNTRY’S IMPORTS WOULD LOWER WORLD PRICE

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  1. LARGE COUNTRY CASE AND OPTIMAL TARIFFTHE ASSUMPTION HERE IS THAT THE IMPORTING COUNTRIES POLICIES CAN IMPACT WORLD PRICES

  2. A POLICY THAT REDUCES A COUNTRY’S IMPORTS WOULD LOWER WORLD PRICE

  3. NO TARIFF PRICE PRICE S ES PW ED D IMPORT IMPORT QUANTITY QUANTITY

  4. PRICE PRICE S ES PW TARIFF D ED IMPORT IMPORT QUANTITY QUANTITY

  5. PRICE PRICE S ES A B P1 C D E F G PW TARIFF H PW1 J I D ED IMPORT IMPORT QUANTITY QUANTITY

  6. PRICE PRICE INCREASE IN PRODUCER SURPLUS S A B P1 C D E F G PW TARIFF H PW1 J I D IMPORT IMPORT QUANTITY QUANTITY

  7. PRICE PRICE CONSUMER LOSS S A B P1 C D E F G PW TARIFF H PW1 J I D IMPORT IMPORT QUANTITY QUANTITY

  8. PRICE PRICE GOVERNMENT REVENUE S A B P1 C D E F PW TARIFF G H PW1 J I D IMPORT IMPORT QUANTITY QUANTITY

  9. PRICE PRICE S LOSS TO EXPORTERS ES A C PI B F PW E TARIFF D PW’ G H D ED IMPORT IMPORT QT QUANTITY QUANTITY

  10. FIXED INTERNAL PRICES BY IMPORTERSA VARIABLE LEVY

  11. THE AMOUNT OF THE TARIFF CHANGES AS THE WORLD PRICE CHANGESL = PT- PW

  12. PRICE PRICE S PT TARIFF PW D ED QUANTITY QUANTITY

  13. PRICE PRICE S WORLD PRICE FALLS - TARIFF SIMPLY INCREASES PT TARIFF PW PW D PERFECTLY INELASTIC QUANTITY QUANTITY

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