P12 86432 S D 4 6 8 9 10 12 Calculate the PS at the world price. Assume the following facts: The autarky price is $4 and the world price is $2 and the world price is what is currently being charged in the market. Producers lobby the government to place a $1 tariff on the good. Calculate the CS at the world price. Calculate the PS at the price that includes the tariff: Calculate the CS at the price that includes the tariff. Q Calculate the DWL at the price that includes the tariff.
P12 86432 S D 4 6 8 9 10 12 Calculate the PS at the world price. Assume the following facts: The autarky price is $4 and the world price is $2 and the world price is what is currently being charged in the market. Producers lobby the government to place a $1 tariff on the good. Calculate the CS at the world price. Calculate the PS at the price that includes the tariff: Calculate the CS at the price that includes the tariff. Q Calculate the DWL at the price that includes the tariff.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Note: Answers to only D and E are required.
Transcribed Image Text:P12
86432
S
D
4 6 8 9 10 12
Calculate the PS at the world price.
Assume the following facts:
The autarky price is $4 and the world price is $2 and the world price is what is currently
being charged in the market. Producers lobby the government to place a $1 tariff on the
good.
Calculate the CS at the world price.
Q
Calculate the PS at the price that includes the tariff:
Calculate the CS at the price that includes the tariff.
Calculate the DWL at the price that includes the tariff.
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