(Solved): The graph below shows the market for tires in the United States, a nation that is open to internati ...

The graph below shows the market for tires in the United States, a nation that is open to international trade but is assumed to be a price taker unable to affect the world price of tires Market for Tires (i) a. Using the groph, at the wond prce of \( \$ 80 \) per tire, how many tires will the United States import? mision Now suppose that domestic bre producers in the Unsed States convince the government to impose a tariff (tax) on imported tires with the goal of reducing the number of tres imponed by \( 50 \% \) (haif of the value in part a) b. How large would the taritr need to be to achieve this goar? c. Using the graph above, indicate the new price with the tartit imposed, the domestic quantity supplied (Qs), and the domestic quantity demanded \( \left(Q_{d}\right) \) that would result with the new tariff in place Instructions: Ure the tool provided Pw + tant' to draw the new pnce after the tanif has been imposed. Then use the tools provided 'Qs tantr' and ' \( \mathrm{Q}_{\mathrm{d}} \) tann' to indicate the domestic quantity supplied and domestic quontry demanded with the tarifr in effect. Now suppose instead that domeste tire producers in the United States comnce the government to impose a tarif (tax) on imported tires with the goal of doubling the quantity of domestic ures produced compared to the quantity supplied at the world price. d. How large would the taniff need to be to achleve this goar?