Answer Happy

The diagram on the right shows the market for tennis shoes in the United States. If the United States does not trade with other countries, what are the equilibrium price and quantity of tennis shoes? and the equilibrium quantity is The equilibrium price is $ of shoes. million pairs Suppose the United States opens to free trade with other countries and the world price is $30 per pair of tennis shoes. What are the quantity demanded, quantity supplied by domestic producers, and the quantity of imports? The quantity demanded is million pairs of shoes, the quantity supplied by domestic producers is million pairs of shoes, and the quantity of imports is million pairs of shoes. Domestic producers complain and convince the government to impose a $5 tariff per pair of tennis shoes. What are the equilibrium price, quantity demanded, quantity supplied by domestic producers, and the quantity of imports? The equilibrium price is $, the quantity demanded is shoes, the quantity supplied by domestic producers is shoes, and the quantity of imports is million pairs of shoes. million pairs of million pairs of 45 35 30 Price I I I T Market for Tennis Shoes I I 10 I 15 20 35 40 I Supply Demand Q (millions)