Question: . From the figure above , in which Dc and Sc refer, respectively to the domestic demand and supply curves of cloth, and SF and
. From the figure above , in which Dc and Sc refer, respectively to the domestic demand and supply curves of cloth, and SF and SF+T refer, respectively, to the world supply curve of cloth under free trade and with a 50% import tariff imposed by the nation on the importation of cloth, determine:
(a)the level ofconsumption
(b) theproduction effect,
(c) the trade effect of the tariff.
(d)the reduction in consumer surplus,
(e)the increase in producer surplus or rent,
(f) the tariff revenue,
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