1 Under free trade, the price of computers in Lakeland was $300 per unit; domestic computer...

  

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1 Under free trade, the price of computers in Lakeland was $300 per unit; domestic computer production was 100000 units per year and imports stood at 250000 units per year. Following the imposition by the government of a $50 per unit tariff on computers, domestic production increased to 200 000 units and imports fell to 70000 units. Calculate (a) the new price paid by consumers, (b) the new price received by domestic producers, (c) computer sales before the tariff, and (d) computer sales after the tariff. 2 Using your answer to question 1, calculate the (a) change in consumer expenditure, (b) change in domestic producer revenue, (c) change in the government's budget, (d) change in foreign producers' quantity of computer exports to Lakeland, and (e) change in foreign producers' export revenues from computer exports to Lakeland. (You may find it useful to use a tariff diagram to do your calculations. The diagram does not have to be drawn to scale.) 1 Under free trade, the price of computers in Lakeland was $300 per unit; domestic computer production was 100000 units per year and imports stood at 250000 units per year. Following the imposition by the government of a $50 per unit tariff on computers, domestic production increased to 200 000 units and imports fell to 70000 units. Calculate (a) the new price paid by consumers, (b) the new price received by domestic producers, (c) computer sales before the tariff, and (d) computer sales after the tariff. 2 Using your answer to question 1, calculate the (a) change in consumer expenditure, (b) change in domestic producer revenue, (c) change in the government's budget, (d) change in foreign producers' quantity of computer exports to Lakeland, and (e) change in foreign producers' export revenues from computer exports to Lakeland. (You may find it useful to use a tariff diagram to do your calculations. The diagram does not have to be drawn to scale.)

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Part 1 Calculating Prices and Sales a New price paid by consumers Before the tariff the price was 30... View the full answer