You have been provided with information on the price of Microwaves after the imposition of a tariff: Under Free Trade you have the following information: World and US Price: $325 per Unit Domestic Consumption 1.9 Million Units Domestic Production: 0.4 Million Units Under a Tariff you have the following information: New US Price: $500 per Unit Domestic Consumption: 1.5 Million Units Domestic Production: 0.7 Million Units Under the Tariff :

(a) How much does the government gain in tariff revenue?

(b) How do domestic producers gain? 

(c) How much do consumer lose? 

(d) What is net national loss?

Answer rating: 100% (QA)

a To calculate the tariff revenue gained by the government subtract the free world price from the price after the tariff then multiply this by the amo... View the full answer