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-(Figure: The Market for Calculators) Use Figure: The Market for Calculators.Assume that S and D represent the domestic demand and supply of calculators,respectively.The world price,P_W,equals $100.The government imposes an import tariff of $20 per calculator.Compared with the free trade situation,the tariff leads to a deadweight loss equal to area:

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-(Figure: The Market for Calculators) Use Figure: The Market for Calculators.Assume that S and D represent the domestic demand and supply of calculators,respectively.The world price,P_W,equals $100.The government imposes an import tariff of $20 per calculator.Compared with the free trade situation,the tariff leads to a deadweight loss equal to area:

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The deadweight loss from a tariff is represented by the areas of the triangles that show the loss in consumer and producer surplus that is not offset by tariff revenue. In this case, it is the areas G + J.

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