6.6 The U.S. government claimed that China and Vietnam were dumping shrimp in the United States at...

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6.6 The U.S. government claimed that China and Vietnam were dumping shrimp in the United States at a price below cost, and proposed duties as high as 112%. Suppose that China and Vietnam were subsidizing their shrimp fisheries. In a diagram, show who gains and who loses in the United States (compared to the equilibrium in which those nations do not subsidize their shrimp fisheries). The United States imposed a 10.17% antidumping duty (essentially a tariff) on shrimp from these and several other countries. Use your diagram to show how the large tariff would affect government revenues and the welfare of consumers and producers.

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Microeconomics With Calculus

ISBN: 9780273789987

3rd Global Edition

Authors: Jeffrey M. Perloff

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