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International Trade
Copyright2004 South-Western
Domestic
supply
Equilibrium
without trade
Price
with tariff
Tariff
Price
without tariff
Imports
with tariff
S
Domestic
demand
D
Q
Imports
without tariff
World
price
Quantity
of Steel
Copyright 2004 South-Western
Consumer surplus
before tariff
Producer
surplus
before tariff
Domestic
supply
Equilibrium
without trade
Price
without tariff
Domestic
demand
S
Q
Imports
without tariff
World
price
Quantity
of Steel
Copyright 2004 South-Western
Consumer surplus
with tariff
Domestic
supply
Equilibrium
without trade
B
Price
with tariff
Tariff
Price
without tariff
Imports
with tariff
S
Domestic
demand
D
Q
Imports
without tariff
World
price
Quantity
of Steel
Copyright 2004 South-Western
Domestic
supply
Producer
surplus
after tariff
Price
with tariff
Equilibrium
without trade
Tariff
Price
without tariff G
Imports
with tariff
S
Domestic
demand
D
Q
Imports
without tariff
World
price
Quantity
of Steel
Copyright 2004 South-Western
Domestic
supply
Tariff Revenue
Price
with tariff
Tariff
E
Price
without tariff
Imports
with tariff
S
Domestic
demand
D
Q
Imports
without tariff
World
price
Quantity
of Steel
Copyright 2004 South-Western
Domestic
supply
Deadweight Loss
B
Price
with tariff
Tariff
Price
without tariff G
Imports
with tariff
S
Domestic
demand
D
Q
Imports
without tariff
World
price
Quantity
of Steel
Copyright 2004 South-Western
Domestic
supply
Equilibrium
without trade
Quota
Isolandian
price with
quota
Equilibrium
with quota
Price
World
without =
price
quota
0
Domestic
supply
+
Import supply
Imports
with quota
S
Domestic
demand
D
Q
Imports
without quota
World
price
Quantity
of Steel
Copyright 2004 South-Western
Domestic
supply
Equilibrium
without trade
Quota
A
Isolandian
price with
quota
Price
World
without =
price G
quota
0
B
C
E'
Equilibrium
with quota
F
E"
Imports
with quota
S
Domestic
supply
+
Import supply
Domestic
demand
D
Q
Imports
without quota
World
price
Quantity
of Steel
Copyright 2004 South-Western
Jobs
National Security
Infant Industry
Unfair Competition
Protection-as-a-Bargaining Chip