03 Question 6 points Although there are clear benefits to

Last updated: 12/4/2023

03 Question 6 points Although there are clear benefits to free trade governments impose tariffs to protect domestic industries The figure below illustrates the effects of a per unit tariff placed on shoes Without trade the equilibrium domestic price of a pair of shoes is 140 With free trade the domestic price of a pair of shoes falls to the world price of 100 If the government imposes a tariff of 20 the domestic price increases to 120 Use the information in the figure to answer the questions that follow 1st attempt Part 1 1 point When there is no tariff Part 2 1 point With the tariff Part 3 1 point Price PD 140 P 120 Pw 100 A 150 200 pairs of shoes are imported pairs of shoes are imported 350 400 Somestic only Swith tariff Domestic Ste rade Quantity shoes See Hint See Hint See Hint