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The Table Given Below Shows the Pre-Tariff and Post-Tariff Prices

Question 56

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The table given below shows the pre-tariff and post-tariff prices, domestic production and consumption of copper in the United States. Suppose the U.S. government imposes a specific tariff of $0.20 per pound on copper imports by the country.  Pre-tariff  Post-tariff  World price $0.50 per b.$0.40 per b. U.S. domestic price $0.50 per b.$0.60 per b U.S. consumption 250 million b.210 million b. U.S. production 100 million b.140 million b.\begin{array}{|l|l|l|} \hline& \text { Pre-tariff } & \text { Post-tariff } \\\hline \text { World price } & \$ 0.50 \text { per } \mathbb{b} . & \$ 0.40 \text { per } \mathbb{b} . \\\hline \text { U.S. domestic price } & \$ 0.50 \text { per } \mathbb{b} . & \$ 0.60 \text { per } \mathbb{b} \text {. } \\\hline \text { U.S. consumption } & 250 \text { million } \mathbb{b} . & 210 \text { million } \mathbb{b} . \\\hline \text { U.S. production } & 100 \text { million } \mathbb{b} . & 140 \text { million } \mathbb{b} . \\\hline\end{array}
a.Calculate the welfare loss to U.S.consumers of copper from the tariff.
b.Calculate the gain to U.S.producers of copper from the tariff.
c.Calculate the revenue collected by the U.S.government from taxing copper imports.
d.Calculate the net gain or loss to the U.S.economy as a whole from the tariff.

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As a result of the tariff the domestic p...

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