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The domestic demand for calculators is given by = , and the domestic supply is given by = 2/ . The world price for a
The domestic demand for calculators is given by = , and the domestic supply is given by = 2/ . The world price for a calculator is $10 per unit, and the government is currently imposing a tariff of $10 on each imported calculator.
Suppose the government decided to lower the tariff from $10 to $5 per calculator. Calculate the change in consumer surplus, the change in the producer surplus, and the change in the government revenue due to lowering the tariff from $10 to $5?
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