Figure: Tariffs
Price
$90
60
40
World supply + tariff
World supply
Domestic
supply
0
350 650
1150
1550 1800 Quantity
Domestic
demand
In the domestic market with international trade and a $20 tariff, the price is
United States is
units.
$60; 1,150
$40; 1,800
$60; 1,550
$90; 1,150
and the quantity purchased in the