c) Estimate Imports without tariff d) Estimate tariff revenue production inefficiency and deadweight loss e) Estimate the additional producer surplus as a result of the tariff imposition.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Question

answer d and e only

Problem 5.
a) Which areas are in the
graph are deducted from
the consumer surplus
as a result of tariff?
Estimate the value of
imports with tariff
c) Estimate Imports
without tariff
b)
d) Estimate tariff revenue
production inefficiency
and deadweight loss
e) Estimate the additional
producer surplus as a
result of the tariff
imposition.
Price
of rice
P = PhP 73.75|
Pw = PhP 70.00|
A
C
D
0 25 50
B
E
F
Domestic
supply
↑ Tariff
Domestic
demand
100 125
World
price
Quantit
of rice
Transcribed Image Text:Problem 5. a) Which areas are in the graph are deducted from the consumer surplus as a result of tariff? Estimate the value of imports with tariff c) Estimate Imports without tariff b) d) Estimate tariff revenue production inefficiency and deadweight loss e) Estimate the additional producer surplus as a result of the tariff imposition. Price of rice P = PhP 73.75| Pw = PhP 70.00| A C D 0 25 50 B E F Domestic supply ↑ Tariff Domestic demand 100 125 World price Quantit of rice
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