Recent content by oscartired

"the same effect on domestic output as a $5 tariff". What is the effect on domestic output of a $5 tariff? Imports shrink by 20, right? If the government implemented an import quota of $20m at world price, wouldn't the effect be an increase of 20m in domestic supply?

For question 20, I put A. Is it not the difference between WP imports (80-20=60) and the tariff of $5 (70-30=40)? = 20? It was a bit of a tricky question imo.