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TARIFF - Coggle Diagram
TARIFF
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producer surplus
it's the difference between the market price & the minimum price at which producers would be willing to sell a given quantity
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consumer surplus
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it's difference between the maximum price that the consumer is willing to pay for a given quantity & market price the consumer actually has to pay.
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protectionism
the economic policy of restraining trade through tariff, quotas or other regulations that burden foreign producers but not domestic producer.
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protectionist tariff
a tax on imported goods meant to protect domestic producers of the goods from cheaper foreign competition.
effect on stakeholder
domestic consumer
consumer surplus decreasea because the price consumers pay is higher & the quantity demanded is lower that with face trade.
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