Answered: c) Estimate Imports without tariff d)…

c) Estimate Imports without tariff d) Estimate tariff revenue production inefficiency and deadweight loss e) Estimate the additional producer surplus as a result of the tariff imposition.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 2PA

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Question

answer d and e only

Problem 5.
a) Which areas are in the
graph are deducted from
the consumer surplus
as a result of tariff?
Estimate the value of
imports with tariff
c) Estimate Imports
without tariff
b)
d) Estimate tariff revenue
production inefficiency
and deadweight loss
e) Estimate the additional
producer surplus as a
result of the tariff
imposition.
Price
of rice
P = PhP 73.75|
Pw = PhP 70.00|
A
C
D
0 25 50
B
E
F
Domestic
supply
↑ Tariff
Domestic
demand
100 125
World
price
Quantit
of rice

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