What is the government revenue from the tariff

Reference no: EM13936035

Suppose that the United States currently imports Tennis racquets without tariff, with the results shown in the first column of numbers below. Congress is thinking of imposing a tariff of $20 per racket and has asked you to estimate the gains and losses to different groups. Your findings are shown in the right-hand column below.

Free-trade situation (no tariff)	Situation with $20 tariff on bats
U.S. domestic price of rackets	$60	$75
Tariff	$0	$20
World price of rackets	$60	$50
U.S. production of rackets per year	200,000	250,000
U.S. imports of rackets per year	300,000	200,000
U.S. consumption of rackets per year	500,000	450,000

a. What is the gain or loss to U.S. tennis racquets buyers from the tariff?

b. What is the gain or loss to U.S. tennis producers from the tariff?

c. What is the government revenue from the tariff?

d. What is the net gain or loss for the U.S. as a whole?

Reference no: EM13936035

Questions Cloud

A class method to initialize class data members. : Sales class data members for a char letter input from the console, a double to hold each individual sale as it is entered and a double for each of the individual salesperson's total commission.

How might reports empower an organization : Describe the difference between internal and external reports. What functions might an organization's internal reports serve? What functions might its external reports serve? How might reports empower an organization

Provide your assessment as to firms degree of transaction : Provide your assessment as to your firm's degree of transaction exposure (as to whether the exposure is high or low). Explain your answer.

Working as an it consultant for abc colleg : You are working as an IT consultant for ABC College. This college was established on year 2000. ABC College has got 500 users and runs different courses such as, Diploma of accounting, Cert IV of accounting, Advance Diploma of IT (Networking), Dip..

What is the government revenue from the tariff : What is the gain or loss to U.S. tennis racquets buyers from the tariff? What is the gain or loss to U.S. tennis producers from the tariff? What is the government revenue from the tariff?

Explain how the focus area relates to the individual : Explain how the focus area relates to the individual, the family, and the community, as well as to all age groups throughout the life span

How the leadership skills is implemented : Create an arguement on leadership either in general scenario or by taking anycompany as an example and how the leadership skills is implemented in it

Evaluate on the responsiveness of the employees : Evaluate on the responsiveness of the employees in Red Voltage - what do you suggest to improve on our services to satisfy your needs in Red Voltage?

Explain desirable characteristics that would reduce exposure : What factors affect a firm's degree of transaction exposure in a particular currency? For each factor, explain the desirable characteristics that would reduce transaction exposure.

User Account

All Pages