Suppose the following figure shows the domestic market for hockey sticks in a certain country. The government has recently imposed tariffs on hockey sticks. While the world price of a hockey stick is $60, the price in this country (with the tariff) is $75. a. How did the quantity of imports change when the government imposed a tariff? b. How much does the government earn from the tariff? c. How does the value of consumer surplus change after the tariff is introduced?
Suppose the following figure shows the domestic market for hockey sticks in a certain country. The
government has recently imposed tariffs on hockey sticks. While the world price of a hockey stick is
$60, the price in this country (with the tariff) is $75.
a. How did the quantity of imports change when the government imposed a tariff?
b. How much does the government earn from the tariff?
c. How does the value of
d. How does the value of
e. What is the value of the
f. What is the value of social surplus after the tariff? How will social surplus change if the tariff is
eliminated and the price of hockey sticks falls to the world price?
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