The Maxwell School
Syracuse University
Syracuse University
Market WTP = 300 - 2*Q
Domestic suppliers as a group have WTAd = 4*Qd
Foreign suppliers as a group have WTAf = 100
A $20 tariff applies to imports
Determine the revenue raised by the tariff.
Determine the change in PS for domestic suppliers produced by the tariff (relative to no tariff).
Determine the change in consumer surplus due to the tariff (relative to no tariff).
Determine the deadweight loss caused by the tariff (relative to no tariff).