8   Depict on graph and briefly explain effects of import tariff (economic consequences for the importing country):   Change in consumer surplus (ΔCS); Change in producer surplus (ΔPS); Government revenue; Production distortion, consumption distortion, and total deadweight loss (DWL).

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 6CQQ
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8

 

Depict on graph and briefly explain effects of import tariff (economic consequences for the importing country):

 

Change in consumer surplus (ΔCS);

Change in producer surplus (ΔPS);

Government revenue;

Production distortion, consumption distortion, and total deadweight loss (DWL).

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