9781118041581

FIGURE 7.8

Trade Restrictions

Figure (a) shows a

complete restriction

on trade. Figure (b)

shows a tariff.

(a)

12.50

$15.00

Price

Quantity of Digital Watches

15 20 25

E

U.S. imports

D

U.S. demand U.S. supply

A

BC

14.00

12.50

$15.00

Price

Quantity of Digital Watches

22201815

U.S. demand U.S. supply

25

J I

B C D

F

HG

(b)

308

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