Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the world price for a good is 25 and the domestic demandand-supply curves are given by the following equations and displayed by the gure

image text in transcribed

image text in transcribed
Suppose the world price for a good is 25 and the domestic demandand-supply curves are given by the following equations and displayed by the gure to the right: Demand: P = 100 - 250 Supply: P = 5 + 20 a. At the world price, total domestic consumption is 30 units. b, At the world price, the total amount of home production is 10 units. 0. The value of consumer surplus is $ 1125 and the value of producer surplus is $ 100 . d. If a tariff of 40 percent is imposed, consumption will become 26 units and domestic production will become 15 units. e. As a result of the tariff, consumer surplus will become $ 845 and producer surplus will become $ 225 . f. The total amount of tax revenue earned by the government from the tariff is $ 110 . g, The net national cost of the tariff is $ 110 100 90 15 20 25 30 35 40 45 50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Business Law

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Abril

6th Edition

1337404349, 978-1337404341

More Books

Students also viewed these Economics questions