Suppose that Canada possesses the following industry (inverse) supply and demand curves for clothing (where quantity measured in pounds): ps= 5 + 20q pd= 130-5q. Now suppose that the world export supply curve is perfectly elastic and given by p = $65. Given the above, Canada will import__________ of clothing. Now suppose that Canada imposes a tariff of $10 per pound. Assume that all tariff revenue is rebated to consumers. In Canada, the new tariff-inclusive import price will be and there will be____________ a deadweight loss of______________ (a) 11.25 lbs; $70 per pound; $12.5. (b) 11.25 lbs; $65 per pound; $4.25. (c) 11.25 lbs; $60 per pound; $0. (d) 10 lbs; $75 per pound; $12.5. (e) 10 lbs; $65 per pound; $4.25
Ma3.
Suppose that Canada possesses the following industry (inverse)
Given the above, Canada will import__________ of clothing. Now suppose that Canada imposes a tariff of $10 per pound. Assume that all tariff revenue is rebated to consumers. In Canada, the new tariff-inclusive import price will be and there will be____________ a
(a) 11.25 lbs; $70 per pound; $12.5.
(b) 11.25 lbs; $65 per pound; $4.25.
(c) 11.25 lbs; $60 per pound; $0.
(d) 10 lbs; $75 per pound; $12.5.
(e) 10 lbs; $65 per pound; $4.25
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