export agreement for automobiles? U.S. auto producers Japanese auto producers th
ID: 1121210 • Letter: E
Question
export agreement for automobiles? U.S. auto producers Japanese auto producers the U.S. government U.S. consumers of Japanese automobiles Score: 0 of 1 15)Suppose that the equations S = 2P and D = 6-P represent a small country's home supply and home demand curves, and the free-trade world price is $1. If the government imposed a 50% tariff on imports, how much revenue would it collect as a result of the tariff? (Note: It is possible to consume partial units of this product, such as 2.5 units.) $1.50 $0.75 $0.50 $2.75 Score: 1 of 1 anhighered.comlaunchpad feenstataylorintlecon4e/5806329#launchpaditem/PX MULTIPART LESSONS/bsi 8984E9A3 8FF OTHI WIT improve the country's welfare if terms of trade gains are larger than deadweight gme consumption and consumption and production losses. rio: Payoff Matrix for Airhus andExplanation / Answer
15. The right answer is option 2. $0.75.
Explanation: The free-trade price is $1. If 50% tariff is imposed, the import price will be = $1 + 50% of $1 = $1.50
When, price is $1.50, demand = 6 - P = 6 - 1.5 = 4.5 and supply = 2P = 2*1.5 = 3
So, the gap between domestic demand and domestic supply = 4.5 - 3 = 1.5
So, 1.5 units will be imported and tarif per unit is $0.50. So, total government revenue = 1.5 * $0.50 = $0.75
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