Suppose there are 2 countries that have the following supply and demand equations in autarky Country...

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Suppose there are 2 countries that have the following supply and demand equations in autarky Country...

Suppose there are 2 countries that have the following supply and demand equations in autarky

Country A

Demand: Q = 800 - 2P

Supply: Q = 2P - 200

Country B

Demand: Q = 400 - 2P

Supply: Q = 2P - 80

a) In the importing country what would be the total amount of government revenue collected as a result of the tariff?

b) In the importing country what would be the change in national welfare from moving from free trade to a tariff? (Use a "-" sign if the change is negative)

c) In the exporting country what would be the change in national welfare from moving from free trade to a tariff? (Use a "-" sign if the change is negative)

d) What would be the change in world welfare as a result of moving from free trade to a tariff? (Use a "-" sign if the change is negative)

business economics

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