Compute the economic surplus and the consumer surplus

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Reference no: EM131104302

Home's demand curve for wheat is P = 40 - 1/2 (QD) and supply is p = 10 + 1/2 (QS)

Illustrate graphically the different economic effects if citizens of home are allowed to buy the wheat in foreign markets and the world price is $20

Compute the economic surplus and the consumer surplus

Home imposes a specific tariff of $4 on wheat import. Determine and graph the effects on the tariff on the following groups:

Home import competing producers

Home consumers

Home government

Show graphically and calculate the terms of trade gain, the efficiency loss, and the total effect on welfare of the tariff.

Reference no: EM131104302

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