P12 S 86432 D Q 4 6 8 9 10 12 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. 50 Calculate the PS at the world price. 4 Calculate the PS at the price that includes the tariff. 9 Calculate the CS at the price that includes the tariff. Calculate the DWL at the price that includes the tariff. a
P12 S 86432 D Q 4 6 8 9 10 12 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. 50 Calculate the PS at the world price. 4 Calculate the PS at the price that includes the tariff. 9 Calculate the CS at the price that includes the tariff. Calculate the DWL at the price that includes the tariff. a
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 8PA
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Transcribed Image Text:P12
S
86432
D
Q
4 6 8 9 10 12
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. 50
Calculate the PS at the world price.
4
Calculate the PS at the price that includes the tariff.
9
Calculate the CS at the price that includes the tariff.
Calculate the DWL at the price that includes the tariff.
a
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