Unformatted text preview: c. Determine the consumer surpluses, producer surpluses and (total) welfare gains in Argentina and Brazil d. Calculate the net welfare gains from trade e. Calculate the importer and exporter gains 3. Assume the importer imposes a tariff of $50 per unit imported a. Derive the new domestic prices and quantities traded in Argentina and Brazil b. Determine the consumer surpluses, producer surpluses and (total) welfare gains in Argentina and Brazil c. Calculate the net welfare change as a result of imposing the tariff d. How would the results change if there was no import tariff but a transportation cost of $50 per unit traded?...
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This note was uploaded on 03/04/2008 for the course ECON 2300 taught by Professor Lee during the Fall '07 term at Cornell.
- Fall '07