Suppose a small country is producing some agricultural goods. The domestic supply and demand are given...

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Suppose a small country is producing some agricultural goods. The domestic supply and demand are given as S=0.5p-40 and D=-0.5p+120 respectively. p is the unit price. The international price for such goods is 100 dollars per ton. The domestic government has decided to charge a 20 dollar/ton specific tariff on imported goods. When the tariff is imposed, how much is the consumer surplus? Suppose a small country is producing some agricultural goods. The domestic supply and demand are given as S=0.5p-40 and D=-0.5p+120 respectively. p is the unit price. The international price for such goods is 100 dollars per ton. The domestic government has decided to charge a 20 dollar/ton specific tariff on imported goods. When the tariff is imposed, how much is the consumer surplus?

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To find the consumer surplus after imposing the tariff we need ... View the full answer