Following table gives demand and supply information on reading glasses. There is graph paper on the...

 

   

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Following table gives demand and supply information on reading glasses. There is graph paper on the page 4 for drawing the figure. Answer questions 1-6 using the information on table 1. Price ($ per pair) Quantity Demanded (millions of pairs) 100 -sti... 1 2 3 4 5 6 80 60 40 20 0 Table 1 Quantity Supplied (millions of pairs) 20 40 60 80 100 120 Suppose US decides to open the reading glass market for free international trade. In the world market a pair of reading glasses is sold at $ 1. 1. At the current world price of $1, what is the Domestic consumption? i. ii. Domestic production? iii. Quantity imported? iv. Tariff revenue? 3. What is the dollar value of the consumer surplus before and after the imposition of the tariff? 4. What is the dollar value of the producer surplus before and after the imposition of the tariff? 5. What is the dollar value of the protection cost, in other words deadweight loss of the tariff? 6. What is the dollar value of the gains from trade before and after the imposition of the tariff? Following table gives demand and supply information on reading glasses. There is graph paper on the page 4 for drawing the figure. Answer questions 1-6 using the information on table 1. Price ($ per pair) Quantity Demanded (millions of pairs) 100 -sti... 1 2 3 4 5 6 80 60 40 20 0 Table 1 Quantity Supplied (millions of pairs) 20 40 60 80 100 120 Suppose US decides to open the reading glass market for free international trade. In the world market a pair of reading glasses is sold at $ 1. 1. At the current world price of $1, what is the Domestic consumption? i. ii. Domestic production? iii. Quantity imported? iv. Tariff revenue? 3. What is the dollar value of the consumer surplus before and after the imposition of the tariff? 4. What is the dollar value of the producer surplus before and after the imposition of the tariff? 5. What is the dollar value of the protection cost, in other words deadweight loss of the tariff? 6. What is the dollar value of the gains from trade before and after the imposition of the tariff?

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Answer Lets answer each question step by step using the information provided 1 At the current world ... View the full answer