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Consider the domestic market for Good X in Country A, graphed above. P0=$2, P1=$8, P2=$6, P3=$7, P*=$5, Pw=$3, Pw,T=$4, Q1=50, Q2=100, Q3=200, Q4=250, and Q*=150.
Consider the domestic market for Good X in Country A, graphed above. P0=$2, P1=$8, P2=$6, P3=$7, P*=$5, Pw=$3, Pw,T=$4, Q1=50, Q2=100, Q3=200, Q4=250, and Q*=150. The world market outside country A observes a price Pw for Good X. The government can potentially impose a $1 per unit tariff on Good X, identified above by Pw,T.
When international trade is allowed with the tariff imposed, what is the total consumer surplus? (Do not include the dollar sign $ in your answer)
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