Consider the cheese market in Ireland. Demand is Q^d = 200 - 4p. Domestic supply is Q^s = P - 20. The free trade price o
Posted: Mon Apr 18, 2022 9:14 am
Consider the cheese market in Ireland. Demand is Q^d = 200 - 4p.
Domestic supply is Q^s = P - 20. The free trade price of cheese is
30.
Q 2(a) Calculate consumer surplus, producer surplus, total
surplus and the number of imports under free trade. Illustrate all
of these on a fully labelled graph.
Q 2(b) Continuing from part A, now suppose that Ireland
imposes a tariff of 12 on beef imports. When it does this, the
world price of beef falls to 53. Calculate and discuss consumer
surplus, producer surplus, tariff revenue, total surplus,
deadweight loss, and the number of imports under the tariff.
Illustrate all of these on a fully labelled graph.
Q 2(c) Is Ireland better off or worse off with the tariff? How
do you know
Domestic supply is Q^s = P - 20. The free trade price of cheese is
30.
Q 2(a) Calculate consumer surplus, producer surplus, total
surplus and the number of imports under free trade. Illustrate all
of these on a fully labelled graph.
Q 2(b) Continuing from part A, now suppose that Ireland
imposes a tariff of 12 on beef imports. When it does this, the
world price of beef falls to 53. Calculate and discuss consumer
surplus, producer surplus, tariff revenue, total surplus,
deadweight loss, and the number of imports under the tariff.
Illustrate all of these on a fully labelled graph.
Q 2(c) Is Ireland better off or worse off with the tariff? How
do you know