1. how much is the tariff? 2. how much are government revenues after the tariff?

Question

1. how much is the tariff?

2. how much are government revenues after the tariff?

3. what's the quantity of imports before the tariff?

4. what's the quantity of imports after the tariff?

5. what letter or letter represents the gain in producer surplus after the tariff?

6. what letter or letters represents the loss in consumer surplus after the tariff?

7. After the tariff what letter or letters represents the loss to the economy as a whole?

Tariffs in a Small Country Setting--70 Points Price of Corn Domestic Supply 110 90 Domestic Demand Quantity of Corn 200 225 285 310 Based on the above graph, answer the following questions

Explanation / Answer

Answer
1)
The tariff=price after tariff-world price
=110-90=$20
2)
Government revenue after tariff=import after tariff*tariff
=(285-225)*20=$1200
3)
import before tariff=quantity demanded at world price -quantity supplied at the world price
=310-200=110 units
4)
import after tariff=quantity demanded after tariff-quantity supplied after the tariff
=285-225
=60 units

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.