Calculate the consumer and producer surplus

Reference no: EM131018143

Calculate equilibrium price, quantity, consumer surplus and domestic producer surplus. Now imagine this country opens to free trade and the world price of steel is $500 per ton. Under free trade, calculate the consumer and (domestic) producer surplus. The US government institutes a steel tariff of $50 per ton. After this tariff is imposed, what is the consumer and (domestic) producer surplus in this market? Are any groups happy about the tariff? What, if any, is the deadweight loss from the tarriff?

Reference no: EM131018143

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