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The Accompanying Diagram Shows the U

Question 58

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The accompanying diagram shows the U.S.market for automobiles.P0 is the world price of automobiles,Q0 is the quantity of American automobiles produced,and Q1 - Q0 is the quantity of automobiles imported.Consumers are indifferent between American and imported automobiles,but each imported automobile creates $100 of pollution costs. The accompanying diagram shows the U.S.market for automobiles.P<sub>0</sub> is the world price of automobiles,Q<sub>0</sub> is the quantity of American automobiles produced,and Q<sub>1</sub> - Q<sub>0</sub> is the quantity of automobiles imported.Consumers are indifferent between American and imported automobiles,but each imported automobile creates $100 of pollution costs. The accompanying diagram shows the U.S.market for automobiles.P<sub>0</sub> is the world price of automobiles,Q<sub>0</sub> is the quantity of American automobiles produced,and Q<sub>1</sub> - Q<sub>0</sub> is the quantity of automobiles imported.Consumers are indifferent between American and imported automobiles,but each imported automobile creates $100 of pollution costs.

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