EconomicsConsider a small country that imports good X from an international market. Let the initial international price of good X be $100, and the country decidesto impose an import tariff of 20% on the product. Use the information in the graph below to answer the following questions. (20 points)Price ofSupply130e120Price after taxa100World PriceImport Demand1020100110Quantity of good X1. What is the world price after tariff?2. Calculate the change in consumer surplus after the tariff.3. Calculate the change in producer surplus after the tariff.4. Calculate the change in government tariff revenue after the tariff.

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120 Price after tax a 100 World Price Import Demand 10 20 100 110 Quantity of good X 1. What is the world price after tariff? 2. Calculate the change in consumer surplus after the tariff. 3. Calculate the change in producer surplus after the tariff. 4. Calculate the change in government tariff revenue after the tariff.

120 Price after tax a 100 World Price Import Demand 10 20 100 110 Quantity of good X 1. What is the world price after tariff? 2. Calculate the change in consumer surplus after the tariff. 3. Calculate the change in producer surplus after the tariff. 4. Calculate the change in government tariff revenue after the tariff.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 3PA

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