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Due to the imposition of tariffs: i . Calculate the total tariff revenues collected by country C .

Due to the imposition of tariffs:


i.  Calculate the total tariff revenues collected by country C.             [1 mark]


ii.  Calculate the tariff revenue paid by the domestic consumers. [1 mark]


iii. Calculate the tariff revenue paid by the foreign exporters. [1 mark]


h.  Due to the imposition of tariff:


i.  Calculate the deadweight loss for country C.                                  [1 mark]


ii.  Calculate the net welfare effect for country C. Does country C gain or lose from this imposition of tariffs? [2 marks]

(a) Country C

(b) World Market



SASSAR288%2=DGSGTHO Price ($) 36 34 32 26 20 Price ($) 26 24 22 20 18 16 14 12 10 8 6 4 2 0 0 5 10 15 20 25

SASSAR288%2=DGSGTHO Price ($) 36 34 32 26 20 Price ($) 26 24 22 20 18 16 14 12 10 8 6 4 2 0 5 10 15 20 25 30 35 40 45 50 55 Quantity (Unit) (a) Country C 60 se 65 70 75 80 85 (b) World Market FIGURE 2: TARIFF FOR LARGE COUNTRY CASE DC DV SEX SEXO 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 Quantity (Unit)

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