Can anyone explain tariff graphs? (1 Viewer)

[CanU_Not]

I seriously don't understand what anything aside from the box being the tariff is. And even that box was through rote learning.
Help?

 

[Intrinsic]

• ABCD = govt tariff revenue
• 0P = imported goods with no tariff applied. Domestic consumer demand is 0Q1 and domestic producer supply is 0Q. Quantity imported before tariff is from Q to Q1
• If tariff of P to P1 is imposed, demand will contract to 0Q3, domestic supply will expand to 0Q2, and imports will fall to Q2-Q3

 

[CanU_Not]

View attachment 31373


• ABCD = govt tariff revenue
• 0P = imported goods with no tariff applied. Domestic consumer demand is 0Q1 and domestic producer supply is 0Q. Quantity imported before tariff is from Q to Q1
• If tariff of P to P1 is imposed, demand will contract to 0Q3, domestic supply will expand to 0Q2, and imports will fall to Q2-Q3

From what? Demand will contract to 0Q3 from...?
Thanks for the help btw

 

[Smooth Operator]

From what? Demand will contract to 0Q3 from...?
Thanks for the help btw

Q1.

 

[CanU_Not]

From what? Demand will contract to 0Q3 from...?
Thanks for the help btw

Woah thanks!
I get everything except for the imports thing now, could you explain that in a little more detail?

 

[Intrinsic]

Woah thanks!
I get everything except for the imports thing now, could you explain that in a little more detail?

Imports before tariff = Q-Q1 // This is because there is no tax on importing goods (imports before tariff is larger than after tariff)
Imports after tariff = Q2-Q3 // So this is a reduction in imports, since people have to pay more to import the good

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