6.5 Based on the estimates of the U.S. daily oil demand function in Equation 9.3 and supply...
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6.5 Based on the estimates of the U.S. daily oil demand function in Equation 9.3 and supply function in Equation 9.4, use calculus to determine the change in deadweight loss from a marginal increase in a tariff, evaluated where the tariff is initially zero.
(Hint: You are being asked to determine how an area similar to that of C + E in Figure 9.8 changes when a small tariff is initially applied. See Solved Problem 9.5.) M
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