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Supply of pineapples and the demand for pineapples

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Reference no: EM131229925

Assume the market for pineapples in the United States is illustrated by the figure to the right, with the supply of pineapples and the demand for pineapples in the U.S. as indicated. Assume trade restrictions are currently in place such that the domestic price of pineapples in the U.S. is p1. Next, suppose the U.S. raises the domestic price of pineapples to p p2 by adding a(or increasing the) tariff on pineapples. (The size of the tariff is p p2 minus p p1.)

1.) Using the rectangle drawing tool, shade in new government revenue from the new tariff.

2.) Using the triangle drawing tool twice, shade in dead weight loss from the new tarriff. Carefully follow the instructions above, and only draw the required objects.

Reference no: EM131229925

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