Problem
Demand and domestic supply curves for crude oil in the nation of Yacimiento are shown in the diagram. The world price for crude oil is $20 per barrel. Identify the quantity demanded and domestic quantity supplied at this price. The government decides to lessen dependence on imported oil by imposing a $10 per barrel tariff on imported crude. Identify the quantity demanded and domestic quantity supplied with the tariff. Shade the area representing government revenue generated by the tariff.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.