If the government of Mexico introduces a $2,000 tariff on car imports, what will be the price of a car in Mexico, the quantity of cars produced in Mexico, the quantity imported into Mexico, and the government€™s tariff revenue?

Use Figure 18.12 and the following information to work. Figure 18.12 shows the car market in Mexico when Mexico places no restriction on the quantity of cars imported. The world price of a car is $10,000.

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FIGURE 18.12 Chapter Checkpoint Assignable Problems 7 to 9 Price (thousands of dollars per car) 18 16 14 12 10 10 12 8. 14 4. Quantity (millions of cars per year)