Situation with Import Tariff Estimated Situation without Tariff World price $0.10 per pound $0.10 per pound Tariff $0.02 per pound 0 Domestic price $0.12 per pound $0.10 per pound Domestic consumption (billions of pounds per year) 20 22 Domestic prod

Situation with Import Tariff Estimated Situation without Tariff World price $0.10 per pound $0.10 per pound Tariff $0.02 per pound 0 Domestic price $0.12 per pound $0.10 per pound Domestic consumption (billions of pounds per year) 20 22 Domestic prod
Situation with Import Tariff Estimated Situation without Tariff World price $0.10 per pound $0.10 per pound Tariff $0.02 per pound 0 Domestic price $0.12 per pound $0.10 per pound Domestic consumption (billions of pounds per year) 20 22 Domestic production (billions of pound per year） 8 6 Import(billions of pound per year) 12 16 Calculate the following measures:(1) The domestic consumers’ gainfrom removing the tariff.(2) The domestic producers’ lossfrom removing the tariff.(3) The government tariff revenueloss.(4) The net effect on nationalwell-being.


国际经济学题目,

Situation with Import Tariff Estimated Situation without Tariff World price $0.10 per pound $0.10 per pound Tariff $0.02 per pound 0 Domestic price $0.12 per pound $0.10 per pound Domestic consumption (billions of pounds per year) 20 22 Domestic prod
a.The domestic consumers' gain from removing the tariff would be 22b - 20b= 2 b,that means without tariff,the unit price will be cheaper （than）with tariff,the consumers' will purchase/consue more.If you call this gain.financially it's a gain,but envirnmentally or ethically,doubt about this.
b.8b - 6b = 2b,As the government removing the tariff,the selling price of sugar will be lower,that means the middle guy who purchase from the sugar cane farm would offer the lower price that with tariff to be able to keep their profit magin (as a middle man).
d.The sugar cane farm will try to protect national interest by ask the government have the tariff on sugar,where the comsumers would love the low price (or more global price) and enjoy the benefit.
c.12b x 0.02cent ,before,government can enjoy the imported amount （12b) on tariff,without tariff,they would lose this amount.