Suppose the federal government imposes a tariff of $1 on each million bagels imported. Re-draw the...
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Suppose the federal government imposes a tariff of $1 on each million bagels imported. Re-draw the demand and supply curves, along with the world supply of bagels with the tariff. Calculate the following with the tariff: 1. The total number of bagels purchased by U.S. consumers millions of bagels were purchased by domestic (U.S.) consumers after the tariff. 2. The number of bagels produced by domestic (U.S.) producers millions of bagels were purchased from domestic (U.S.) producers after the tariff. 3. The number of bagels produced by foreign producers (imported). millions of bagels were imported by the U.S. after the tariff. 4. Assuming that international trade is available, has the consumer surplus of bagel consumers increased, decreased, or stayed the same as a result of the tariff? 5. Assuming that international trade is available, has the producer surplus of U.S. bagel producers increased, decreased, or stayed the same as a result of the tariff? 6. Calculate the amount of revenue the government will derive from the tariff. The revenue obtained by the government from this tariff is $ 7. Calculate the deadweight loss associated with the tariff. The deadweight loss from this tariff is $ millions. millions. Price $1 $2 $3 $4 $5 $6 $7 Quantity of bagels demanded (millions) 150 125 100 75 50 25 0 Quantity of bagels supplied (millions) 0 12.5 25 37.5 50 62.5 75 Suppose the federal government imposes a tariff of $1 on each million bagels imported. Re-draw the demand and supply curves, along with the world supply of bagels with the tariff. Calculate the following with the tariff: 1. The total number of bagels purchased by U.S. consumers millions of bagels were purchased by domestic (U.S.) consumers after the tariff. 2. The number of bagels produced by domestic (U.S.) producers millions of bagels were purchased from domestic (U.S.) producers after the tariff. 3. The number of bagels produced by foreign producers (imported). millions of bagels were imported by the U.S. after the tariff. 4. Assuming that international trade is available, has the consumer surplus of bagel consumers increased, decreased, or stayed the same as a result of the tariff? 5. Assuming that international trade is available, has the producer surplus of U.S. bagel producers increased, decreased, or stayed the same as a result of the tariff? 6. Calculate the amount of revenue the government will derive from the tariff. The revenue obtained by the government from this tariff is $ 7. Calculate the deadweight loss associated with the tariff. The deadweight loss from this tariff is $ millions. millions. Price $1 $2 $3 $4 $5 $6 $7 Quantity of bagels demanded (millions) 150 125 100 75 50 25 0 Quantity of bagels supplied (millions) 0 12.5 25 37.5 50 62.5 75
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To analyze the effects of the tariff lets first draw the initial supply and demand curves along with ... View the full answer
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
Posted Date:
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