tfracciscoramon
09.11.2019 •
Business
The united states currently imports all of its coffee. suppose the annual demand for coffee by u.s. consumers is given by the demand curve qequals=240240minus−55p, where q is quantity (in millions of pounds) and p is the market price per pound of coffee. world producers can harvest and ship coffee to u.s. distributors at a constant marginal (equals=average) cost of $66 per pound. u.s. distributors can in turn distribute coffee for a constant $11 per pound. the u.s. coffee market is competitive. congress is considering a tariff on coffee imports of $22 per pound.a) if there is no tariff, how much do consumers pay for a pound of coffee? what is the quantity demanded? b) if the tariff is imposed, how much will consumers pay for a pound of coffee? what is the quantity demanded? c) calculate lost consumer surplus.d) calculate the tax revenue collected by the government.e) does the tariff result in a net gain or a net loss to society as a whole?
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Ответ:
(a) $7; $205 million
(b) $9; $195 million
(c) $400 million
(d) $390 million
(e) Loss = $10 million
Explanation:
(a) Price paid by consumers when no tariff imposed:
= Marginal cost + Distribution cost
= $6 + $1
= $7
Quantity demanded:
Q = 240 - 5P
= 240 - 5 × $7
= 240 - $35
= $205 million pounds
(b) At imposed tariff of $2 per pound, then the new price paid by consumers:
= Marginal cost + Distribution cost + Tariff
= $6 + $1 + $2
= $9
New quantity demanded:
Q = 240 - 5P
= 240 - 5 × $9
= 240 - $45
= $195 million pounds
(c) Lost consumer surplus:
= ($9 - $7)($195) + (0.5)($9 - $7)($205 - $195)
= ($2 × $195) + (0.5 × $2 × $10)
= $390 + $10
= $400 million
(d) Tax revenue collected by government:
= Quantity demanded under tariff × tariff
= $195 × $2
= $390 million
(e) Tax revenue of $390 million received is less than the value of coffee sold under tariff $400 million.
Loss = $400 million - $390 million
= $10 million
Ответ:
It is 4
Step-by-step explanation: