Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have been provided with information on the price of Microwaves after the imposition of a tariff: Under Free Trade you have the following information:

You have been provided with information on the price of Microwaves after the imposition of a tariff: Under Free Trade you have the following information: World and US Price: $325 per Unit Domestic Consumption 1.9 Million Units Domestic Production: 0.4 Million Units Under a Tariff you have the following information: New US Price: $500 per Unit Domestic Consumption: 1.5 Million Units Domestic Production: 0.7 Million Units Under the Tariff :

(a) How much does the government gain in tariff revenue?

(b) How do domestic producers gain? 

(c) How much do consumer lose? 

(d) What is net national loss?



Step by Step Solution

3.45 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

a To calculate the tariff revenue gained by the government subtract the free world price from the price after the tariff then multiply this by the amo... 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

Microeconomics An Intuitive Approach with Calculus

Authors: Thomas Nechyba

1st edition

538453257, 978-0538453257

More Books

Students also viewed these Economics questions

Question

=+1. Why might a business invest in another companys stock?

Answered: 1 week ago