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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Microeconomics With Calculus

ISBN: 9780273789987

3rd Global Edition

Authors: Jeffrey M. Perloff

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