Economics • International Trade
Tariff Impact Simulator
Adjust the world price and the size of a specific tariff to see how the tax on imports shifts the domestic price and quantity, and who gains and loses as a result — for Cambridge International AS Economics.
Tariff Analysis
International Trade & Government Intervention Model
Area A: Producer Surplus Gain
Area B: Production Inefficiency (DWL)
Area C: Govt Tariff Revenue
Area D: Consumption Inefficiency (DWL)
Simulation Controls
⚠️ Prohibitive Tariff! The tariff price equals or exceeds the domestic local equilibrium price ($55). Trade has ceased entirely (Imports = 0).
Market & Welfare Analysis
| Stakeholder / Metric | Impact | Value |
|---|---|---|
| Consumers | Worse Off | Loss: -0 (A+B+C+D) |
| Domestic Producers | Better Off | Gain: +0 (Area A) |
| Government | Revenue | Gain: +0 (Area C) |
| Importers / Foreign | Volume Dropped | -0 units |
| Net Social Welfare | Deadweight Loss | -0 (B + D) |
Quantity Changes
| Domestic Output (Q1 → Q2) | +0 units |
| Domestic Demand (Q4 → Q3) | -0 units |
| Import Volume (Q4−Q1 → Q3−Q2) | 0 units |