Answer to Question #294021 in Economics for Bezs

Question

1.Suppose that the world price for a good is 40, and the domestic demand and supply curves are given by the following equations:

            Demand: P=80-2Q

            Supply: P=5+3Q

a. How much is consumed? How much is produced domestically?

b. What are the values of producer and consumer surplus?

c. If a 10% tariff is imposed, by how much do consumption and domestic

production change?

d. What is the change in consumer and producer surplus?

e. How much revenue does the government earn from the tariff?

f. What is the net national cost of the tariff?

Answer 1

It's been a while since this question is posted here. Still, the answer hasn't been got. Consider converting this question to a fully qualified assignment, and we will try to assist. Please click the link below to proceed: Submit order