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Suppose the following diagram shows the domestic supply and demand curve for a good. Assume that the world price is $20 per unit. 1. What
Suppose the following diagram shows the domestic supply and demand curve for a good. Assume that the world price is $20 per unit. 1. What would be the total import quantity? 2. If the government introduces a $10 tariff on import, then what would be the total import quantity.3. How much would the government earn from the import tariff?4. How much would the consumers lose(reduction in the consumer surplus)? 5. How much would the producers gain(increase in the producer surplus)
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