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?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 38CTQ: Show graphically that for any tariff, there is an equivalent quota that would give the same result....

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