Andrew Cassel, a business writer for the Philadelphia Inquirer will be speaking at 112 Kern at 8 pm on Wednesday. He will be speaking about the recent stock market decline and its future. Licensed domestic firms import a certain number of goods, buy at world price and sell at domestic price. Import supply is added to domestic supply resulting in new equilibrium.
Consumers pay more, less is imported, but domestic producers gain deadweight loss.
Both tariffs and import quotas raise the domestic price, reduce the welfare for consumers, increase the welfare for producers and cause deadweight loss. The uncompensated effects that the production or consumption of goods has on third parties Information contained on this page does not represent the lecuture verbatim. These notes are not a substitute for class attendance.