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Economic Analysis of a Tariff You have been provided with information on the price of copper before and after the imposition of a tariff: Under

Economic Analysis of a Tariff

You have been provided with information on the price of copper before and after the imposition of a tariff:

Under Free Trade you have the following information:

World and US Price: $3 per Unit

Domestic Consumption 10 Billion Units Domestic Production: 4 Billion Units

Under a Tariff you have the following information:

New US Price: 4.50 per Unit

Domestic Consumption: 7.5 Billion Units Domestic Production: 4.5 Billion Units

Under the Tariff :

(a) How much does the government gain in tariff revenue?

(b) How do domestic producers gain?

(c) How much do consumers lose?

(d) What is net national gain or loss?

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