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28 Sep 2019
Given the demand and supply equations are QD = 950 - P and QS=2P-160, suppose the free trade (world) price is $200.
a. Solve for the amount imported, consumer surplus, and producer surplus.
b. Suppose a per unit tariff of $30 is imposed by the government. Solve for the consumer surplus, producer surplus, government revenue and total surplus with the tariff.
c. Solve for the change in consumer surplus, the change in producer surplus, the change in government revenue and change in total surplus.
Given the demand and supply equations are QD = 950 - P and QS=2P-160, suppose the free trade (world) price is $200.
a. Solve for the amount imported, consumer surplus, and producer surplus.
b. Suppose a per unit tariff of $30 is imposed by the government. Solve for the consumer surplus, producer surplus, government revenue and total surplus with the tariff.
c. Solve for the change in consumer surplus, the change in producer surplus, the change in government revenue and change in total surplus.
Anne Gillian DueroLv10
28 Sep 2019
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