EBK MICROECONOMICS
9th Edition
ISBN: 8220103630955
Author: Rubinfeld
Publisher: PEARSON
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Chapter 9, Problem 7E
The United States currently imports all of its coffee. The annual
- a. If there is no tariff, how much do consumers pay for a pound of coffee? What is the quantity demanded?
- b. If the tariff is imposed, how much will consumers pay for a pound of coffee? What is the quantity demanded?
- c. Calculate the lost
consumer surplus . - d. Calculate the tax revenue collected by the government.
- e. Does the tariff result in a net gain or a net loss to society as a whole?
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Recently, China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations:
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Price Elasticity of Supply; Author: Economics Online;https://www.youtube.com/watch?v=4bDIm3j-7is;License: Standard youtube license