You have been provided with information on the price of Avocados in the U.S before (free...

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You have been provided with information on the price of Avocados in the U.S before (free trade/pre tariff) and after the imposition of a tariff on imports: Domestic Consumption (free trade/pre tariff): Domestic Consumption (post tariff): Domestic Production (post tariff): Domestic Production (free trade/pre tariff): Domestic Price (post tariff): World and Domestic Price (free trade/pre tariff): World Price (post tariff): (a) What is the domestic producers gain (give quantity)? (b) What is the consumers loss (give quantity)? (c) What is the Government Revenue? 6.75 Billion Units 6.25 Billion Units 3.50 Billion Units 2.75 Billion Units $3.25 $2.50 $2.30 (d) What is the value of the part of the Government Revenue paid by foreign firms (as opposed to domestic consumers) in this case (give quantity)? (e) What is the net national gain or loss (give quantity)? Assume the world price of the good decreases overtime, but the tariff remains unchanged. What is the impact on the following (increase, decrease, unchanged)? (f) Consumption Effect. (h) Consumer Loss_ (g) Producer Income__ (i) Government Gain_ (j) Assume that domestic demand now decreases by 1 million units at any given price but there is no change in policy. Who would have preferred a quota over a tariff- consumers or producers? You have been provided with information on the price of Avocados in the U.S before (free trade/pre tariff) and after the imposition of a tariff on imports: Domestic Consumption (free trade/pre tariff): Domestic Consumption (post tariff): Domestic Production (post tariff): Domestic Production (free trade/pre tariff): Domestic Price (post tariff): World and Domestic Price (free trade/pre tariff): World Price (post tariff): (a) What is the domestic producers gain (give quantity)? (b) What is the consumers loss (give quantity)? (c) What is the Government Revenue? 6.75 Billion Units 6.25 Billion Units 3.50 Billion Units 2.75 Billion Units $3.25 $2.50 $2.30 (d) What is the value of the part of the Government Revenue paid by foreign firms (as opposed to domestic consumers) in this case (give quantity)? (e) What is the net national gain or loss (give quantity)? Assume the world price of the good decreases overtime, but the tariff remains unchanged. What is the impact on the following (increase, decrease, unchanged)? (f) Consumption Effect. (h) Consumer Loss_ (g) Producer Income__ (i) Government Gain_ (j) Assume that domestic demand now decreases by 1 million units at any given price but there is no change in policy. Who would have preferred a quota over a tariff- consumers or producers?

Answer rating: 100% (QA)

a The domestic producers gain is the change in total production from pretariff levels to posttariff ... View the full answer