The graph below shows the market for apricots in the United States, a nation that is open to international trade but is assumed to be a price taker unable to affect the world price of apricots.
Instructions: Enter your answers as a whole number.
1. Using the graph, at the world price, how many apricots will the United States import?
___ thousand tons
Now suppose that domestic apricot growers in the United States convince the government to impose a tariff (tax) on imported apricots to raise the price in the United States to $700 per ton.
2. How large would the tariff need to be to achieve this goal?
___ $ per ton
3. Using the graph above, indicate the price of apricots, the domestic quantity supplied (Qs), and the domestic quantity demanded (Qd) that would result with the new tariff in place.
Instructions: Use the tool provided 'Pw + tariff' to draw the new price after the tariff has been imposed. Then use the tools provided 'Qs tariff' and 'Qd tariff' to indicate the domestic quantity supplied and domestic quantity demanded with the tariff in effect.
4. As a consequence of this tariff, how many apricots will the United States import?
___ thousand tons
5. Given your answers above, who will suffer from this tariff?
a.) Foreign apricot growers and domestic consumers
b.) Foreign and domestic apricot growers
c.) Foreign apricot growers only
d.) Domestic consumers and domestic apricot growers