The demand and supply functions for a product ina large country are given as Qd = 130 – 3P and Qs= -30 + 2P respectively. The world price is 20$ andthe large country imposes an ad valorem tariff of%50. After the imposition of tariff world pricedecreases to 16$. Calculate the change inconsumer surplus, producer surplus, governmentrevenue and social welfare after the imposition oftariff.

supply and demand, in economics, relationship between the quantity of a commodity that producers…

he large country imposes an ad valorem taritt of 650. After the imposition of tariff world price decreases to 16$. Calculate the change in consumer surplus, producer surplus, government evenue and social welfare after the imposition of ariff.

he large country imposes an ad valorem taritt of 650. After the imposition of tariff world price decreases to 16$. Calculate the change in consumer surplus, producer surplus, government evenue and social welfare after the imposition of ariff.

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

The demand and supply functions for a product in
a large country are given as Qd = 130 – 3P and Qs
= -30 + 2P respectively. The world price is 20$ and
the large country imposes an ad valorem tariff of
%50. After the imposition of tariff world price
decreases to 16$. Calculate the change in
consumer surplus, producer surplus, government
revenue and social welfare after the imposition of
tariff.

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