You have been asked to quantify the effects of a country's tariff on rare earth. Somebody has
Question:
You have been asked to quantify the effects of a country's tariff on rare earth. Somebody has estimated how many ponds of rare earth would be produced, consumed by the country if there were no rare earth duty. You are given the information shown in the table Situation with Estima t ion port who are World price $20 per pound $20 per pound Tart 55 per pound Domestic consumption 20 billions of pounds per year) Domestic production billions of pounds per Calculate the following measures (draw a diagram and put all numbers on it):
a the domestic price with tariff and without tariff
b. the import quantity with tariff and without tariff
c. the domestic consumers' gain from removing the tariff.
e. the domestic producers' loss from removing the tariff.
f. the government tariff revenue loss. .
g. the net effect on national well-being
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac