Show the effects of the $200 tariff on the following graph. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas representing deadweight loss (DWL) caused by the tariff. 1200 Domestic Demand Domestic Supply 1100 World Price Plus Tariff 1000 900 800 700 PS 600 500 Pw 400 Government Revenue 300 200 160 180 200 DWL 80 100 120 140 20 40 60 QUANTITY (Tons of soybeans) PRICE (Dollars per ton)
Show the effects of the $200 tariff on the following graph. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas representing deadweight loss (DWL) caused by the tariff. 1200 Domestic Demand Domestic Supply 1100 World Price Plus Tariff 1000 900 800 700 PS 600 500 Pw 400 Government Revenue 300 200 160 180 200 DWL 80 100 120 140 20 40 60 QUANTITY (Tons of soybeans) PRICE (Dollars per ton)
Chapter20: International Trade
Section: Chapter Questions
Problem 11QP
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Question
Transcribed Image Text:Complete the following table to summarize your results from the previous two graphs.
Under Free Trade
Under a Tariff
(Dollars)
(Dollars)
Consumer Surplus
Producer Surplus
Government Revenue
Based on your analysis, as a result of the tariff, Honduras's consumer surplus
by $
, producer surplus
in revenue. Therefore, the net welfare effect is a
by $
, and the government collects $
of
24
Transcribed Image Text:Hômework (Ch 09)
Show the effects of the $200 tariff on the following graph.
Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer surplus
with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square
symbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas
representing deadweight loss (DWL) caused by the tariff.
1200
Domestic Demand
Domestic Supply
1100
World Price Plus Tariff
1000
900
CS
800
700
PS
600
500
Pw
400
Government Revenue
300
200
140
160
180
200
DWL
20
40
60
80
100
120
QUANTITY (Tons of soybeans)
PRICE (Dollars per ton)
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