As in given question, you have been asked to quantify the effects of removing an import duty; somebody has already estimated the effects on the country's production, consumption, and imports. This time the facts are different. The import duty in question is a 5 percent tariff on imported motorcycles. You are given the information shown in the table.
Calculate the following:
a. The consumer gain from removing the duty.
b. The producer loss from removing the duty.
c. The government tariff revenue loss
d. The net effect on the country's well-being. Why does the net effect on the country as a whole differ from the result in given Question?
Question
You have been asked to quantify the effects of removing a country's tariff on sugar. The hard part of the work is already done: Somebody has estimated how many pounds of sugar would be produced, consumed, and imported by the country if there were no sugar duty. You are given the information shown in the table.
Calculate the following measures:
a. The domestic consumers' gain from removing the tariff.
b. The domestic producers' loss from removing the tariff.
c. The government tariff revenue loss.
d. The net effect on national well-being.