For question 17, please show chnage in consumer surplus, producer surplus and go

Question

For question 17, please show chnage in consumer surplus, producer surplus and government revenue that will effect country welfare. PCs can be produced by three small countries; A, B, and C. PC market is perfectly competitive in all countries. Figure 2 shows country A's domestic market for PCs. Answer questions 14-19 according to Figure 2 Figure 2 14) Under free trade, A will import Sottariff A) 70 PCs from country C. B) 70 PCs from C and 100 PCs from B. 00 PCs from B. LA:eifig 15) If A imposes a per unit tariff on imports from both B and C, it will mport Se f 2040 PCs from, B. B) 10 PCs from C D) 40 PCs from B and 10 PCs from C C) 40 PCs from each. and >Q 20 30 40 só 60 80 100 12

Explanation / Answer

17) ans is d

Firm will import from C now and increase in consumer surplus=d+e+f+g+h

But there is a loss of tariff revenue by e+f+g+k+l+m

Thus change in welfare=d+h-k-l-m

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.