Explanation of social welfare under tariff

Reference no: EM1311233

Given:

D*= 100-40xP, S*= 40+40xP

D= 1000-400xP, S= 800+400xP

What is autarky price and quantity equilibrium for both home and foreign? What is the open trade price and volume under free trade. What is Pt, Pt*,Trade Volume under tariff? What is the change in consumer surplus, change in producer surplus and tariff revenue for the importing country? Please graph all the different scenarios.

Reference no: EM1311233

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