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The world producer price for baseballs is $24 per dozen, and almost all of them
The world producer price for baseballs is $24 per dozen, and almost all of them
游客
2025-06-21
14
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问题
The world producer price for baseballs is $24 per dozen, and almost all of them are produced outside the U.S. Suppose the U.S demand curve is QD=100,000-2,000P, where P is price per dozen, and Q is measured in dozens. The U. S domestic supply curve is QS=-10,000 + 1,000P.
(a) Before a tariff is imposed, what is the U. S equilibrium price? Domestic consumption? Domestic production? Imports?
(b)Congress has decided to help the baseball manufacturing industry for national security reasons, and it imposes a tariff of $6 per dozen. What are the new equilibrium price, domestic consumption, domestic production, and imports?
选项
答案
(a)Without a tariff, the domestic equilibrium price is the world price of $24. The domestic consumption equilibrium is QD(24)=100,000-2,000(24)=52,000. Domestic supply is QS(24)=-10,000+1,000(24)=14,000, so imports equal 38,000.
(b)The new equilibrium price is 24+6=$30. After the tariff, domestic demand is QD(30)= 100,000-2,000(30)=40,000, and domestic supply is QS(30)=-10,000+1,000(30) = 20,000; imports therefore fall to 20,000.
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