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Suppose that coffee producers in this country successfully lobbied for help from the local government, and the government imposed a 21unit import quota on coffee.
Suppose that coffee producers in this country successfully lobbied for help from the local government, and the government imposed a 21unit import quota on coffee. 4. How much would Producer Surplus (PS) change as a result of this import quota? What is the Deadweight Loss resulting from this import quota? [3 points] Suppose that the government officials took ECO 101, and learned that tariffs led to less Deadweight Loss that tariffs, for an equivalent local price. So they decided to move to an import tariff instead of an import quota to fulfill their protectionist goals. 5. What tariff could the government put in place to deliver the same quantity of imports and the 21unit import quota? [1 point] 6. How much revenue would this tariff raise? How much is the Deadweight Loss reduced by using this tariff instead of the 21unit import quota? [2 points] Consider the market for coffee, with Supply and Demand given by the following: Supply: Q = P - 6 Demand: Q = 90 23:) Suppose that this country is a small, open economy, engaging in international trade, and that the world price of coffee is $40 per unit
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