Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumers' surplus with the tariff and the purple triangle (diamond symbols) to show the producers' 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 triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. PRICE (Dollars per ton) 460 430 400 370 340 310 280 250 220 190 160 Domestic Demand 05 Domestic Supply 10 15 20 25 30 35 40 QUANTITY (Thousands of tons of wheat) Consumers' Surplus Producers' Surplus Government Revenue 45 50 World Price Plus Tariff CS PS Government Revenue Based on your analysis, as a result of the tariff, Kenya's consumers' surplus by S and the government collects S Complete the following table to summarize your results from the previous two graphs. Under Free Trade (Dollars) Under a Tariff (Dollars) DWL by S producers' surplus in revenue. Therefore, the net welfare effect is a

Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumers' surplus with the tariff and the purple triangle (diamond symbols) to show the producers' 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 triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. PRICE (Dollars per ton) 460 430 400 370 340 310 280 250 220 190 160 Domestic Demand 05 Domestic Supply 10 15 20 25 30 35 40 QUANTITY (Thousands of tons of wheat) Consumers' Surplus Producers' Surplus Government Revenue 45 50 World Price Plus Tariff CS PS Government Revenue Based on your analysis, as a result of the tariff, Kenya's consumers' surplus by S and the government collects S Complete the following table to summarize your results from the previous two graphs. Under Free Trade (Dollars) Under a Tariff (Dollars) DWL by S producers' surplus in revenue. Therefore, the net welfare effect is a

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 8PA

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