Calculate the cost to consumer and the benefit to producers

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Reference no: EM13825981

Problem-

Given the following information, calculate the cost to consumer, the benefit to producers, the change in government revenue, and the deadweight loss of a proposed 15% tariff on cars.

Price of cars (free trade): $40,000

Domestic Production (free trade): 200

Domestic Production (after tariff): 260

Domestic Consumption (free trade): 400

Domestic Consumption (after tariff): 360

Additional Information-

The problem related to Economics and it is explain about calculating cost to customer, benefits to producers, and change in government deadweight loss and revenue. This problem is about the tariff on cars which have been produced and consumed domestically.

Reference no: EM13825981

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