5) The domestic supply function in a market is given by Q = 2p0.5. Without tariff, the market upply is horizontal at p=25, What is the change in producer surplus from a marginal increase in tariff, evaluated where the tariff is initially zero? ) 10

5) The domestic supply function in a market is given by Q = 2p0.5. Without tariff, the market upply is horizontal at p=25, What is the change in producer surplus from a marginal increase in tariff, evaluated where the tariff is initially zero? ) 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

15) The domestic supply function in a market is given by Q = 2p0.5. Without tariff, the market
supply is horizontal at p=25, What is the change in producer surplus from a marginal increase in
a tariff, evaluated where the tariff is initially zero?
A) 10
B) 15
C) 25
D) 50

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