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A quota on imported clothing

A quota on imported clothing. Before quota. After quota. Change. CS. J+K+M+N+R+S. J+M. Lose K+N+R+S. PS. L. K+L. Gain K. TS. J+K+M+N+R+S+L. J+K+L+M. Lose N+R+S. $/Q. S(MC). J. M. Pq. US price w/quota. K. R. N. S. wp. World price. L. D(MV). clothing. Qs. Qd.

theodore-gilliam
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A quota on imported clothing

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  1. A quota on imported clothing Before quota After quota Change CS J+K+M+N+R+S J+M Lose K+N+R+S PS L K+L Gain K TS J+K+M+N+R+S+L J+K+L+M Lose N+R+S $/Q S(MC) J M Pq US price w/quota K R N S wp World price L D(MV) clothing Qs Qd

  2. TAX REVIEW $/Q A 165 S(MC) B G 100 H C C 80 E I D(MV) F 60 Q/wk 100 0

  3. TAX REVIEW Before tax After tax Change Q 100 60 -40 Buyer’s price $100 $165 +$65 Seller’s price $100 $80 -$20 TE by buyers C+E+F+H+I B+C+E+F XXXXXX TR kept by sellers C+E+F+H+I E+F XXXXXX TV of Q A+B+C+E+F+G+H+I A+B+C+E+F -(G+H+I) TC of Q F+I F -I CS A+B+G A -(B+G) PS C+E+H E -(C+H) Tax revenue NONE B+C +(B+C) TS A+B+C+E+G+H A+B+C+E -(G+H) Dead wt. loss NONE G+H +(G+H)

  4. Tariff on imported pickup trucks $k/truck S 65 11 19 7.5 13 2 2.5 18 3 D 23 27 k. pickups 5 10

  5. Tariff on Pickup Trucks w/o tariff w/ tariff change P $18k $19k +$1k U.S. consumption 27k 23k -4k U.S. production 5k 10k +5k U.S. imports 22k 13k -9k CS $101m $76m -$25m PS $3m $10.5m +$7.5m Tariff revenue none $13m +$13m TS $104m -$4.5m $99.5m

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