(Solved): graphical comparison of tariff and quotas  Borzia and Ardon are small countries that protect th ...

Borzia and Ardon are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of tefevisions to 20 milion. To this end, each country imposes a different type of trade barrier when the world price \( \left(P_{w}\right) \) is \( \$ 2,000 \). In Borzia, the government decides to impose a tariff of \( \$ 3,000 \) per television; in Ardon, the government implements a quota of 20 million televisions. Assume that Borzla and Ardon have identical domestic demand \( \left(D_{0}\right) \) and supply \( (S) \) curves for televisiohs as shown on the following graph. Under these conditions, the price of televisions is \( \$ 5,000 \) per television in each country. Assuming Borzia keeps the tariff at \( \$ 3,000 \) per television, complete the first row of the following table by calculating each of the values given this increase in demand. Assuming Ardon maintains a quota of 20 million televisions, complete the second row of the table by calculating each of the values given this increase in demand. True or False: The increase in demand hurts domestic producers but helps domestic conisumers in Ardon. True False Which of the following explain why a tariff is a Th. restrictive trade barrier than an equivalent quota. Check all that apply. A tariff does not limit the domestic \( p i \quad \) ase. A foreign producer may offset the tar I price reductions. Tariffs allow for some degree of competition. Which of the following explain why a tariff is a restrictive trade barrier than an equivalent quota. Check all that apply. A tariff does not limit the domestic price increase. A foreign producer may offset the tariff by the price reductions. Tariffs allow for some degree of competition.