2 In the following figure, PW is the world price and PW + T is the world price plus a tariff. Identify the following:

a. The level of imports at PW.

b. The level of imports at PW + T.

c. The loss in consumers’ surplus as a result of a tariff.

d. The gain in producers’ surplus as a result of a tariff.

e. The tariff revenue as the result of a tariff.

f. The net loss to society as a result of a tariff.
g. The net benefit to society of moving from a tariff situation to a no-tariff situation.

Transcribed Image Text:

Price Pw+T Pw 7 3 1 2 5 Sus Dus Q Q3 Q4 Q2 Quantity