THE DATA IS NOT BASED ON THE ABOVE PROBLEM. The Slivonian government are pressured by the "plum growers association" to protect them from foreign competition. The suggested tariff is 30%. Please quantify the welfare effect of such tariff. Assume the "large country case"

Without tariff

With tariff

World price (delivered in Slivonia)

40 SVK/Kg

36

Tariff

0

Domestic price

50 SVK/Kg

Slivonian consumption (tons/year)

200

180

Slivonian production (tons/year)

140

160

Import (tons/year)

14. How much will the Slivonian consumers lose from the tariff?

15. How much will the Slivonian producers gain from the tariff?

16. How much will the Slivonian government gain from the tariff?

17. What is the net welfare loss or gain from the tariff in Slivonia?