Question

Spall HW on Tariffs g Diane Monaco Market for Sugar Based Ethanol (SBE) Price Supply* Of SBE Pme "E" "D" P warld Taritt "IMPORTS" I "C" "B". Pt I I Demand 0 Od Qs Qm Qd Qse Quantity of SBE 1. Calculate the before and after consumer surplus (CS), before and after producer surplus (PS), before and after tariff revenue, and the before and after consumption and production deadweight losses (both b and d as depicted in class) resulting from the implementation of a tariff in the market depicted above with the numbers below where D(intercept)- 8.00, S(intercept)-2.10, Pworld 3.40 Paomesic 3.90 Pldttarif 3.55 Qsdomestic5 Qs-15 Qomestic 20 Qd-28 Qdsomesti-34 2. Calculate the before and after consumer surplus (CS), before and after producer surplus (PS), before and after tariff revenue, and the before and after consumption and production deadweight losses (both b and d as depicted in class) resulting from the implementation of a tariff in the market depicted above with the numbers below where D(intercept)- 19.20, S(intercept)-6.80, Pwoeld 10.20 Paomestic-11.50 Pworld tari 10.90 Qsomestic-8 Qs-14 Qdomestic 22 Qd2 27 Qdsomestic 35

Answer 1

rii of SBET Supply 3.90 Fb / 3.55 3.40 5 15 20 2834 0 2.140 I oty of SBE Initial free bade, sinal after tarifs Inities CS = are at btet dt erftg that i - 1x34x4.60 = 78.2 Final GS. = area atbtctd - £x 28 x 4,45 = 6213 Intre P.S.= aree j = 2 x5 x 1.3 -3.25 final l.S-area jre = £x15x1,80=13.5 tariff revena area erfigth = 28x0.15 4.2 Prod" DWL = area of a xlox 0.15=0.75 consor Dola ar i=1x6x0.15 = 0.45