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Unformatted text preview: Calculate: Change in Consumer Surplus Change in Producer Surplus Tax revenues Deadweight loss. Draw a graph to show the above. 2. Let us assume that the free trade price of laptop monitors is $100 and that the US levies a specific tax of $10 . Let us say that the domestic price of laptops rise to $105 (The US is a large country) . At the free trade price, the US produces 8 thousand units per week, and imports 16 thousand units. At the higher price of $105, domestic production rises to 10 thousand units per week and imports fall to 10 thousand units. Calculate the following: (i) Dead weight loss (ii) Gain for the US from the trading partner. (iii) Net Gain/Loss for the US....
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- Fall '08
- International Economics