A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is Qs = 50+ 5P. The demand curve is Qd = 400-10P. Suppose for political reasons the government counts a dollar's worth of gain to producers as being worth $2 of either consumer gain or government revenue. Assume the government's objective is to maximize national welfare. The change in the government's objective of a tariff of $5 per unit is $. (Round your answer to the nearest penny.)

A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is Qs = 50+ 5P. The demand curve is Qd = 400-10P. Suppose for political reasons the government counts a dollar's worth of gain to producers as being worth $2 of either consumer gain or government revenue. Assume the government's objective is to maximize national welfare. The change in the government's objective of a tariff of $5 per unit is $. (Round your answer to the nearest penny.)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter35: International Trade Restrictions

Section: Chapter Questions

Problem 3E

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