A market in Country B, which is a small economy, is described by the following supply and demand curves, respectively: QS=P-5 QD=40-2P where Q and QD are quantity supplied and demanded, and P is price. Suppose the world price is $10. The government in Country B places $3 tariff (per unit) on imported goods. What is the tariff revenue that the government collects?

A market in Country B, which is a small economy, is described by the following supply and demand curves, respectively: QS=P-5 QD=40-2P where Q and QD are quantity supplied and demanded, and P is price. Suppose the world price is $10. The government in Country B places $3 tariff (per unit) on imported goods. What is the tariff revenue that the government collects?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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