The country of Tajikistan is small and cannot influence world prices. And it imports peanuts for $10$ TL per kilo. Demand curve D$=400-10$P and Supply curve S$=50+5$P$.$ The country of Tajikistan decides to impose a customs tariff of $5$ TL per kilo on peanuts.

a$)$ Calculate the net cost $($efficiency loss$)$ of the customs tariff Application. $(10$ points$)$

b$)$ Calculate the revenue obtained by the country Tajikistan from the tariff. $(5$ Points$)$

c$)$ If the country of Tajikistan applied a tariff that reduced imports to zero, how many TL would it be per kilo? $(5$ Points$)$

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Analyzing the Impact of a Customs Tariff on Peanuts in Tajikistan Given Tajikistan is a small countr... View the full answer