Supply Price of Televisions W P,-100 Demand 200 400 1,0001,200 Quantity of Televisions (Thousands)As a result of the decrease in the world price, consumer surplus
Supply Price of Televisions W P,-100 Demand 200 400 1,0001,200 Quantity of Televisions (Thousands)As a result of the decrease in the world price, consumer surplus in the United States by $ million, producer surplus by $ million, and total surplus by $ million. (Hint: Recall that the area of a triangle is X Base x Height.) Suppose the U.S. government responded by putting a tariff of $100 on imported televisions. As a result of this import tariff, consumer surplus will and producer surplus will . The government will raise $ million in revenue at the cost of million in deadweight loss. True or False: From the standpoint of U.S. welfare, this is a good policy, but domestic producers will not support it. True O False
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