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A particular metal is traded in a highly competitive world market at a world price of $5.5 per ounce. Unlimited quantities are available for import
A particular metal is traded in a highly competitive world market at a world price of $5.5 per ounce. Unlimited quantities are available for import into Canada at this price. The supply of this metal from domestic Canadian mines and mills can be represented by the equation Qs = 10 + 4P, where Qs is Canadian output in million ounces and P is the domestic price. The demand for the metal in Canada is Qd=143-5.1P, where Qd is the domestic demand in million ounces. If Canada imposes a tariff of $2.87 per ounce, how much revenue will the government earn from the tariff? Answer: million dollars (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO 2 DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS.)
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