Using the graph, assume that the government imposes a R1 tariff on ice cream.
a. What is the domestic price and quantity demanded of ice cream after the tariff is imposed?
b. What is the quantity of ice cream imported before the tariff?
c. What is the quantity of ice cream imported after the tariff?
d. What would be the amount of consumer surplus before the tariff?
e. What would be the amount of consumer surplus after the tariff?
f. What would be the amount of producer surplus before the tariff?
g. What would be the amount of producer surplus after the tariff?
h. What would be the amount of government revenue because of the tariff?
i. What would be the total amount of deadweight loss due to the tariff?
Correct Answer:
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b. 66
c. 4...
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