4. Suppose demand and supply are exactly as described in problem 3, but there is no marginal...

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4. Suppose demand and supply are exactly as described in problem 3, but there is no marginal social benefit to production. However, for political reasons the government counts a dollar’s worth of gain to producers as being worth $3 of either consumer gain or government revenue. Calculate the effects on the government’s objective of a tariff of 5 per unit.

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International Finance Theory And Policy

ISBN: 9781292019550

10th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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