The world price of textiles is Pw, as in the accompanying figure of the domestic supply and demand for textiles.

The government imposes a tariff t, to protect the domestic producers. For this tariff:
a. Label the revenue gains to domestic producers.
b. Label the revenue to government.
c. Label the costs to domestic producers.
d. Are the gains to domestic producers greater than the costs? Why?

Transcribed Image Text:

Price with tariff P, -- price Pw Quantify