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Pf Pt Pric e Quantity Supply (Domesti c) Demand (Domestic)

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Price

Quantity

Supply (Domestic)

Demand (Domestic)

Price

Quantity

Supply (Domestic)

Demand (Domestic)

World Price/Supply

World Price in Japan with Tariff

Ss SdSs’ Sd’

Price

Quantity

Supply (Domestic)

Demand (Domestic)

World Price/Supply

World Price in Japan with Tariff

Ss SdSs’ Sd’

tariff

Import Quantity with Free Trade

Domestic Production

Price

Quantity

Supply (Domestic)

Demand (Domestic)

World Price/Supply

World Price in Japan with Tariff

Ss SdSs’ Sd’

tariff

Import Quantity with Tariff

Price

Quantity

Supply (Domestic)

Demand (Domestic)

World Price/Supply

World Price in Japan with Tariff

Price

Quantity

Supply (Domestic)

Demand (Domestic)

World Price/Supply

World Price in Japan with Tariff

Price

Quantity

Supply (Domestic)

Demand (Domestic)

World Price/Supply

World Price in Japan with Tariff

CS’

Consumer’s Loss from Tariff

Price

Quantity

Supply (Domestic)

Demand (Domestic)

World Price/Supply

World Price in Japan with Tariff

PS’

Producer’s Gain from Tariff

Price

Quantity

Supply (Domestic)

Demand (Domestic)

World Price/Supply

World Price in Japan with Tariff

Government Revenue from Tariff

Gov’t Rev

Page 10: Pf Pt Price Quantity Supply (Domestic) Demand (Domestic)

Consumer’s Loss (-)

Page 11: Pf Pt Price Quantity Supply (Domestic) Demand (Domestic)

Consumer’s Loss (-)

Producer’s Gain (+)

Page 12: Pf Pt Price Quantity Supply (Domestic) Demand (Domestic)

Consumer’s Loss (-)

Producer’s Gain (+)

Government Revenue (+)

Page 13: Pf Pt Price Quantity Supply (Domestic) Demand (Domestic)

Net Loss to Society or Deadweight Loss (DWL)

Net Loss of Tariff to Importing Country

Page 14: Pf Pt Price Quantity Supply (Domestic) Demand (Domestic)

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