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A market in Country B, which is a small economy, is described by the following supply and demand curves, respectively: QS=P-5 QD=40-2P where QSand QDare
A market in Country B, which is a small economy, is described by the following supply and demand curves, respectively:
QS=P-5
QD=40-2P
where QSand QDare quantity supplied and demanded, and P is price.Suppose the world price is $10.The government in Country B places $3 tariff (per unit) on imported goods. What is the tariff revenue that the government collects?
a.
30
b.
6
c.
18
d.
45
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