Which areas represent deadweight loss as a result of tariff

Assignment Help Macroeconomics

Reference no: EM131919485

Problem

Suppose a country imposes a tariff on coffee imports. Using the diagram of supply and demand in Figure 17P-4 identify the correct shaded areas as follows.

a. In autarky, which area(s) comprise domestic consumer surplus? Which area(s) comprise domestic producer surplus?

b. When the country opens up to trade, which area(s) do consumers gain as surplus? Which area(s) do producers lose?

c. After trade, if an import tariff is imposed, which area(s) do domestic producers gain as surplus? Which do domestic consumers lose?

d. With the tariff, which area is government revenue?

e. Which area(s) represent deadweight loss as a result of the tariff?

f. If the country uses an import quota instead of a tariff, what is the quota quantity if the quota price is $7?

Reference no: EM131919485

Questions Cloud

Which group would be more harmed by a trade embargo : Suppose a country has abundant capital but scarce labor. Which group would be more harmed by a trade embargo: owners of capital or laborers?

Do you have liability for the damages to the other motorist : Does your contract, which provides the driver is an independent contractor, protect you from liability from the third-party motorist?

In which country do land owners support a trade agreement : In which country do land owners support a trade agreement? In which country do workers support a trade agreement?

Record the journal entries for the given transactions : Incurred a contingency loss of $45,000 on a lawsuit. The company's lawyer believes there is a reasonable possibility that the company could lose.

Which areas represent deadweight loss as a result of tariff : Which area(s) represent deadweight loss as a result of the tariff? With the tariff, which area is government revenue?

What is the potential outcome if this is not a priority : What is the primary importance of monitoring and reviving teams? What is the potential outcome if this is not a priority? What are your thoughts?

Graph the domestic producer surplus increase : Graph the domestic producer surplus increase as a result of this quota? Graph the deadweight loss that results from this quota.

What can we do to help communicate those values : Assuming that we would like a protégé to demonstrate these same values, what can we do to help communicate those values?

How much revenue does the us government collect from tarifft : How much revenue does the U.S. government collect from the tariff? Graph the deadweight loss associated with the tariff.

User Account

All Pages