Question: draw a graph showing how a tariff on imported Matcha tea leaves from Japan would produce the following results for a Starbucks customer and a

draw a graph showing how a tariff on imported Matcha tea leaves from Japan would produce the following results for a Starbucks customer and a Starbucks store located in Lincoln, Nebraska. (Hint: draw the graph large enough to incorporate labels for free trade and the impact of the tariff):

  • the domestic price increases
  • imports are reduced
  • the domestic producer surplus increases
  • the consumer surplus is reduced
  • the total surplus is reduced
  • 2. Clearly label all axes, lines, and areas

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