Question
I need help on these hard questions Consider the market for steel shown in the chart.Assume the market for steel is open to world trade
I need help on these hard questions
Consider the market for steel shown in the chart.Assume the market for steel is open to world trade and that the world price is $10 per ton.
a. Will the country import or export?
b. How many tons will be imported or exported?
c. How much is the consumer surplus?
d. How much is the producer surplus?
NOW Consider the market for steel shown in the chart.Assume that the market for steel is open to world trade and that the world price is $10 per ton and that steel producers have convinced the government to impose a tariff of $20 per ton.
a. Will the country import or export?
b. How many tons will be imported or exported?
c. How much is the consumer surplus?
d. How much is the producer surplus?
e. How much revenue will the tariff raise for the government?
f. How much is the deadweight loss?
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