Here, How is this last part calculated if the tarrif is $6, Of the Home's tariff revenue, $__ comes from Foreign's producers, and the rest comes from Home's consumers With free trade, Home's consumer surplus equals $112.5 and Foreign's producer surplus equals $112.5. With a tariff of $6equals $72, Home's tariff revenue equals $72, and Home's deadweight loss equals $4.5. Of the Home's tariff revenue, $per flash drive, Home's consumer surplus equals $72, Foreign's producer surpluscomes from Foreign's producers, and the rest comes from Home's consumers.

Tariff revenue is the product of tariff per unit and the equilibrium quantity after tariff. The…

Answered: Of the Home's tariff revenue, $__…

Business

Economics

Of the Home's tariff revenue, $__ comes from Foreign's producers, and the rest comes from Home's consumers

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 6. Tariffs as trade policy always involve economic costs to the trading countries; less trade,…

A: A tariff is a sort of border tax imposed by a country on an imported commodity. Tariffs have long…

Q: Price Pw+t Pw 08 C Ob+d+f+h Od+f+h Od+h a b 100 d 200 g f h 500 700 Supply Demand Refer to Graph 3…

A: Dead weight loss is defined as the loss of total welfare caused by market inefficiency, which is…

Q: A country produces two goods, soda and chips. It currently exports soda and imports chips. If it…

A: The objective of the question is to understand the impact of imposing a tariff on the imports of…

Q: The two main reasons why international trade is restricted are that tariffs A. save jobs and allow…

A: A tariff is a tax or duty imposed by a government on goods either imported or exported.Governments…

Q: 1. Explain a) Do results differ if tariffs are used by small, and large countries? b) Is there any…

A: a. Tariff refers to the tax imposed by the government on goods imported into the country. If large…

Q: 4. Under what conditions may a tariff actually make a country better off?

A: Under certain conditions, a tariff can probably make a country better off. Right here are a few…

Q: The United States is the fifth largest sugar consumer and the fifth largest sugar producer in the…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: If a country removes a tariff on imported shoes we expect the domestic price of shoes to and the…

A: Tariffs are taxes imposed on imported goods, which increase the price of those goods in the home…

Q: Put yourselves in the shoes of a buyer of a washing machine . . . how would the tariff affect your…

A: A tariff is only a tax or obligation. As a result, import duties may be collected on foreign goods…

Q: If a tariff levied by a small country causes the welfare of the country to fall, why would such a…

A: If a tariff levied by a small country causes the welfare of the country to fall .

Q: 9 Assume Australia is an importer of sofas and there are no trade restrictions. Australian consumers…

A: Consumer surplus is the difference between the price that the consumers are willing to pay and the…

Q: The following figure illustrates the demand and supply schedules for pocket calculators in Mexico,…

A: In the absence of trade, the equilibrium is determined where the demand and supply are equal. The…

Q: Pheef A B D с D What could this graph be used to illustrate? O a. The welfare benefits when a…

A: An open economy refers to an economic system that engages in international trade and has relatively…

Q: copared with the Tariff, would belgium's welfare be different if it set a quota ( that had the same…

A: Globalization has enhanced international trade and the emergence of a world market for goods and…

Q: In the figure to the right, the importing country imposes a tariff that raises the domestic price…

A: It can be defined as a duty that is imposed by the central authority of the economy on the import…

Q: In the figure to the right, the importing country imposes a tariff that raises the domestic price…

A: Tariffs(t) raise the cost(C) of imported goods. This leads to higher prices(P) for consumers.Higher…

Q: The tariff causes?

A: Imports without tariff = 24 - 4 = 20 units. Imports after tariff = 18 - 10 = 8 units.Thus,Change in…

Q: Quantify the effects of a country’s tariff on sugar Situation with import tariff…

A: The objective of this question is to understand the impact of removing a tariff on sugar in a…

Q: With a 5 peso import tariff (compared to free trade) domestic producers in The Philippines gain an…

A: Tariff is the tax imposed on the government for importing goods from other countries. It is…

Q: Restrictions on imports may not include tariffs. O True O False

A: Imports refers to purchase of goods that are produced in foreign countries by domestic residents of…

Q: The following is not the cost of the tariff a. area a b. area b c. area d d. area a+b+c+d

A: A tariff is a type of tax that is imposed on imports of a country so that the imports decrease in a…

Q: Price in dollars Global price before tariff No trade price Domestic price after - tariff 18 13 10 8…

A: Tariff refers to a type of tax that the country importing goods imposes on the goods. Thus when the…

Q: if the world price is 5 dollars and import quota 300. The price after the quota will be ? I dont…

A: At the world price of $5, total domestic demand is of 800 units and total domestic supply is of 50…

Question

Here, How is this last part calculated if the tarrif is $6, Of the Home's tariff revenue, $__ comes from Foreign's producers, and the rest comes from Home's consumers

With free trade, Home's consumer surplus equals $112.5 and Foreign's producer surplus equals $112.5. With a tariff of $6
equals $72, Home's tariff revenue equals $72, and Home's deadweight loss equals $4.5. Of the Home's tariff revenue, $
per flash drive, Home's consumer surplus equals $72, Foreign's producer surplus
comes from Foreign's producers, and the rest comes from Home's consumers.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Figure: World Imports Domeste dend The imposition of a $20 tariff would generate a valur of lost gains from trade of O S45. O S0. O S70 091S O
Sometimes governments use the 'national security' argument to justify protecting an industry with tariffs. (Choose the best answer) O Stockpiling the product is a plausible alternative to ensure national security interests without risking a trade war. O An export subsidy would always be the first best option Most countries are much weaker than the USA and therfore would never retaliate. O This argument is always plausible since tarrifs are the best way to ensure the industry is able to survive.
Tariff on tennis racquets Suppose a country imports tennis racquets. If the government introduces a tariff on tennis racquets, the tariff revenue it collects will exceed the reduction in CS to domestic buyers of racquets. a) true b) false Can someone help me to understand this question? If a tariff is imposed the consumer surplus will be reduced but do we if it will be greater than the revenue the government collects? any help will be appreciated.
Figure: Tariffs Price $90 88 150 O $90; 1,150 O $60; 650 O $60, 1,150 O $40; 1,800 Domestic spply World supply tarif 1150 1550 1800 In the domestic market with international trade and no tariffs, the price is Domenic demand Quantity and the quantity purchased in the United States is units.
Consider the market for coffee in the small, isolated country of Krakozhia. Within Krakozhia, the domestic demand for coffee is: Q = 500-2p and the domestic supply of coffee is: Q* = -150+ 3p
In the figure to the right, the importing country imposes a tariff that raises the domestic price from $8 to $12 but lowers the foreign export price from $8 to $4. The net welfare gain from this tariff for the importing country is OA. $18. OB. $4. OC. $34. O D. $16. 24- 22- 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- C Price, P 1 2 3 5 6 S d 8 D 9 10 11 12 Quantity, Q