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Pf Pt Price Quantity Supply (Domestic) Demand (Domestic)

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Presentation on theme: "Pf Pt Price Quantity Supply (Domestic) Demand (Domestic)"— Presentation transcript:

1 Pf Pt Price Quantity Supply (Domestic) Demand (Domestic)

2 Pf Pt Price Quantity Supply (Domestic) Demand (Domestic) World Price/Supply World Price in Japan with Tariff Ss Sd Ss’ Sd’

3 Pf Pt Price Quantity Supply (Domestic) Demand (Domestic) World Price/Supply World Price in Japan with Tariff Ss Sd Ss’ Sd’ tariff Import Quantity with Free Trade Domestic Production

4 Pf Pt Price Quantity Supply (Domestic) Demand (Domestic) World Price/Supply World Price in Japan with Tariff Ss Sd Ss’ Sd’ tariff Import Quantity with Tariff

5 Pf Pt Price Quantity Supply (Domestic) Demand (Domestic) World Price/Supply World Price in Japan with Tariff CS

6 Pf Pt Price Quantity Supply (Domestic) Demand (Domestic) World Price/Supply World Price in Japan with Tariff PS

7 Pf Pt Price Quantity Supply (Domestic) Demand (Domestic) World Price/Supply World Price in Japan with Tariff CS’ Consumer’s Loss from Tariff

8 Pf Pt Price Quantity Supply (Domestic) Demand (Domestic) World Price/Supply World Price in Japan with Tariff PS’ Producer’s Gain from Tariff

9 Pf Pt Price Quantity Supply (Domestic) Demand (Domestic) World Price/Supply World Price in Japan with Tariff Government Revenue from Tariff Gov’t Rev

10 Consumer’s Loss (-)

11 Producer’s Gain (+)

12 Consumer’s Loss (-) Producer’s Gain (+) Government Revenue (+)

13 Net Loss to Society or Deadweight Loss (DWL) Net Loss of Tariff to Importing Country

14


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