Lecture
This lecture covers the basics of supply and demand, including consumer and producer surplus, equilibrium, and open-economy supply and demand. It then delves into the impact of tariffs, analyzing positive and normative aspects, different types of trade barriers, and the international relations of trade policy. The instructor explains how tariffs affect consumer and producer welfare through changes in prices and quantities. The lecture concludes with a discussion on equilibrium price adjustments to match supply and demand, emphasizing the role of prices as coordinating devices.