Suppose the following diagram shows the domestic supply and demand curve for a good. Assume that the world price is $20 per unit. 2$ 50 45 40 35 30 35 20 15 10 D 10 20 30 40 50 60 70 80 90 Q1: What would be the total import quantity? Q2: If the government introduces a $10 tariff on import, then what would be the total import quantity? Q3: How much would the government earn from the import tariff? Q4: How much would the Consumers lose (reduction in the Consumer Surplus)?

Suppose the following diagram shows the domestic supply and demand curve for a good. Assume that the world price is $20 per unit. 2$ 50 45 40 35 30 35 20 15 10 D 10 20 30 40 50 60 70 80 90 Q1: What would be the total import quantity? Q2: If the government introduces a $10 tariff on import, then what would be the total import quantity? Q3: How much would the government earn from the import tariff? Q4: How much would the Consumers lose (reduction in the Consumer Surplus)?

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 5PA

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Answer d and e only
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