A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is Qs = 50+ 5P. The demand curve is Qd = 400-10P. Suppose for political reasons the government counts a dollar's worth of gain to producers as being worth $2 of either consumer gain or government revenue. Assume the government's objective is to maximize national welfare. The change in the government's objective of a tariff of $5 per unit is $. (Round your answer to the nearest penny.)
A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is Qs = 50+ 5P. The demand curve is Qd = 400-10P. Suppose for political reasons the government counts a dollar's worth of gain to producers as being worth $2 of either consumer gain or government revenue. Assume the government's objective is to maximize national welfare. The change in the government's objective of a tariff of $5 per unit is $. (Round your answer to the nearest penny.)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter33: International Trade
Section: Chapter Questions
Problem 6QP
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