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Determine the SWL. D: P = 400 - Q SD: P = 40 + Q. In equilibrium Qsd = Qd, so: 400 - Q = 40 + Q, 2Q = 360, Q = 180 units. P = 400 - Q = 400 - 180 = $220. If the world supply (Sw) is: P = $80 and the tariff of P = $40 is imposed, then the new price is P = 80 + 40 = $120. The new quantity demanded is: 120 = 400 - Q, Q = 280 units. The quantity supplied domestically is: 120 = 40 + Q, Q = 80 units, so the amount of import is: SWL = 280 - 80 = 200 units.
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