Based on the supply and demand of the baseball caps, the relevant supply quantities are:
- a. 20,000 baseball caps.
- b. 60,000 baseball caps.
- c. 30,000 baseball caps.
- d. 40,000 baseball caps.
What quantity of baseball caps will be supplied domestically?
At the price of €2, the supply according to the graph is:
= 20,000 baseball caps.
What quantity will be imported?
The quantity imported is shown as:
= Demand at €2 - Domestic supply at €2
= 80 - 20
= 60,000 baseball caps
What quantity will be supplied domestically with the tariff?
A tariff of €1 would increase the price to €3.
At this price, the supply would be:
= 30,000 baseball caps.
What quantity will be imported with the tariff?
At the new price, the quantity imported is:
= Demand at €3 - Domestic supply at €3
= 70,000 - 30,000
= 40,000 baseball caps.
Find out more on supply and demand at https://brainly.com/question/516635.
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