trade barriers and world price (by natalia and ishaan)
TRANSCRIPT
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Trade is beneficial because it allows each nation to SPECIALIAZE in certain products.
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Q
P Surplus/Exports
Consumer Surplus(New)
Producer Surplus(New)
S
D
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Q
P
Consumer Surplus(New)
Producer Surplus(New)
Shortage/Imports
S
D
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P
Q
S
DDeadweight LossGovt. Revenue
Amt. of Tariff
Consumer Surplus(New)
Producer Surplus(New)
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P
Q
S
DDeadweight Loss
License Holder Surplus
Amt. of Quota
Consumer Surplus(New)
Producer Surplus(New)
Whoever holds a license is only one who can import the good, and because there are limited licenses imported supply goes down.
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