Q. Assume the demand and supply for wine within the U.S. are
Qd = 100 - 20P [U.S. demand curve]
Qs = 20 + 20P [U.S. supply curve]
Assume the demand and supply for wine in the rest of the world (R.O.W.) are
Qd = 80 - 20P [R.O.W. demand curve]
Qs = 40 + 20P [R.O.W. supply curve]
Compute the deadweight loss if the U.S. imposes a tariff of 25 cents per bottle of imported wine.