The following formula is used to estimate the deadweight loss from a tariff: where PM is import value; P^W is the world price and M is the volume of imports. Suppose that the United States imposes a 20% antidumping duty on Chinese steel imports when the world price is $500 per ton, the value of imports with the duty is $400 million, and the volume of imports with the duty fell by 10%. Which of the following is the deadweight loss?

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The Answer of The following formula is used to estimate the deadweight loss from a tariff: where PM is import value; P^W is the world price and M is the volume of imports. Suppose that the United States imposes a 20% antidumping duty on Chinese steel imports when the world price is $500 per ton, the value of imports with the duty is $400 million, and the volume of imports with the duty fell by 10%. Which of the following is the deadweight loss?

The Following Formula Is Used to Estimate the Deadweight Loss