Suppose that the domestic demand for television sets is described by Q = 40,000 180P and

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Suppose that the domestic demand for television sets is described by Q = 40,000 − 180P and that the supply is given by Q = 20P. If televisions can be freely imported at a price of $160, how many televisions would be produced in the domestic market? By how much would domestic producer surplus and deadweight loss change if the government introduces a $20 tariff per television set? What if the tariff was $70?
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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