The U.S. wheat market is shown in Figure 17P-5. Suppose the United States wants to protect its wheat industry by imposing a tariff of $\$ 1 /$ bushel on foreign wheat, which currently sells at the world price of $\$ 4 /$ bushel.

b. How much revenue does the U.S. government collect from the tariff?

The U.S. wheat market is shown in Figure 17P-5. Suppose the United States wants to protect its wheat industry by imposing a tariff of $\$ 1 /$ bushel on foreign wheat, which currently sells at the world price of $\$ 4 /$ bushel.

a. Graph consumer and producer surplus after the $\$ 1 /$ bushel tariff is imposed.

Suppose Mexico wants to protect its domestic automobile industry from U.S. and Japanese competition. How will a tariff on imported cars help it to accomplish this task? How does the tariff affect domestic producer and consumer surplus?

The world wheat market is shown in Figure 17P-4.

c. How will the world price be affected by the entrance of the United States into the world market?

The world wheat market is shown in Figure 17P-4.

b. Suppose a large country like the United States has been an autarky but is now going to allow free trade. Draw the effect the entrance of the United States into the world market has on the world supply and world demand curves.