Consider the market for widgets. Widgets are produced in the United States, unless producers aren… 1 answer below »

Consider the market for widgets. Widgets are produced in the
United States, unless producers aren’t willing to meet the quantity
demanded at a particular price. In that case, widgets are
imported.

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Suppose that the price with free trade is $7. If lawmakers want to
ensure that U.S. widget producers can sell at least 8,000 widgets,
what might they do?

Price

Quantity Demand

Quantity SuppliedDomestically

Quantity Imported

      $6 13,000 2,000 8,000
      $7 12,000 4,000 8,000
      $8 11,000 6,000 5,000
      $9 10,000 8,000 2,000
      $10 9,000 9,000 0
      $11 8,000 10,000 0

impose a tax on imported widgets

provide a subsidy for imported widgets

impose an import quota