Draw a domestic supply and demand diagrams for a product in which the United States does not have a comparative advantage. What impact do foreign imports have on domestic price and quantity? On your diagram show a protective tariff that eliminates approximately one-half of the assumed imports. What are the price-quantity effects of this tariff on (a) domestic consumers, (b) domestic product?© BrainMass Inc. brainmass.com October 9, 2019, 6:52 pm ad1c9bdddf
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Because the United States does not have a comparative advantage in this product the world price Pc is below the ...
Price-quantity effects of protective tariffs on a product in which the United States does not have a comparative advantage.