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Receive 4/10 for this, not sure which ones I got right and which ones I got wrong Suppose Home is a large country whose supply
Receive 4/10 for this, not sure which ones I got right and which ones I got wrong
Suppose Home is a large country whose supply and demand curves are given by the left of the following figures. Assume that the world price under the free trade was $6 and the government imposed an import tariff of $5 which was shared by domestic consumers and foreign exporters. 1. With the new tariff, home consumers need to pay $ for the goods, foreign exporters receive \$ from selling the goods and paying tariff. 2. Under the free trade, consumer surplus was $ and producer surplus was q 3. With $5 tariff, consumer surplus is $ and producer surplus is $ and government tariff revenue is $ 4. With tariff, the terms of trade gains is \$ and total deadweight loss is $ 5. In this case, imposition of tariff increases country's total welfare by $ Suppose Home is a large country whose supply and demand curves are given by the left of the following figures. Assume that the world price under the free trade was $6 and the government imposed an import tariff of $5 which was shared by domestic consumers and foreign exporters. 1. With the new tariff, home consumers need to pay $ for the goods, foreign exporters receive \$ from selling the goods and paying tariff. 2. Under the free trade, consumer surplus was $ and producer surplus was q 3. With $5 tariff, consumer surplus is $ and producer surplus is $ and government tariff revenue is $ 4. With tariff, the terms of trade gains is \$ and total deadweight loss is $ 5. In this case, imposition of tariff increases country's total welfare by $Step by Step Solution
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