Transcript Effects of Tariff Figure

Price
Supply
(Domestic)
Pt
Pf
Demand
(Domestic)
Quantity
Price
Supply
(Domestic)
Pt
World Price in
Japan with
Tariff
Pf
World
Price/Supply
Demand
(Domestic)
Ss
Ss’
Sd’
Sd
Quantity
Price
Supply
(Domestic)
World Price in
Japan with
Tariff
Pt
tariff
Pf
Import Quantity
with Free Trade
Ss
Domestic
Production
Ss’
Sd’
World
Price/Supply
Demand
(Domestic)
Sd
Quantity
Price
Supply
(Domestic)
World Price in
Japan with
Tariff
Pt
tariff
Pf
World
Price/Supply
Import Quantity with Tariff
Demand
(Domestic)
Ss
Ss’
Sd’
Sd
Quantity
Price
Supply
(Domestic)
CS
Pt
World Price in
Japan with
Tariff
Pf
World
Price/Supply
Demand
(Domestic)
Quantity
Price
Supply
(Domestic)
Pt
World Price in
Japan with
Tariff
Pf
World
Price/Supply
PS
Demand
(Domestic)
Quantity
Consumer’s Loss from Tariff
Price
Supply
(Domestic)
CS’
Pt
World Price in
Japan with
Tariff
Pf
World
Price/Supply
Demand
(Domestic)
Quantity
Producer’s Gain from Tariff
Price
Supply
(Domestic)
World Price in
Japan with
Tariff
Pt
Pf
World
Price/Supply
PS’
Demand
(Domestic)
Quantity
Price
Government Revenue from Tariff
Supply
(Domestic)
World Price in
Japan with
Tariff
Pt
Pf
Gov’t
Rev
World
Price/Supply
Demand
(Domestic)
Quantity
Consumer’s Loss (-)
Producer’s Gain (+)
Consumer’s Loss (-)
Producer’s Gain
(+)
Consumer’s Loss (-)
Government
Revenue (+)
Net Loss of Tariff to Importing Country
Net Loss to Society or
Deadweight Loss (DWL)