This question is about quantifying the effects of removing a country's tariff on sugar. The following...

This question is about quantifying the effects of removing a country's tariff on sugar. The following table shows how many pounds of sugar would be produced, consumed and imported by the country if there were no sugar duty.

	Situation with Import tariff	Estimated situation without tariff
World Price	$0.10 per pound	$0.10 per pound
Tariff	$0.02 per pound	0
Domestic price	$0.12 per pound	$0.10 per pound
Domestic consumption	20	22
Domestic production	8	6
Import	12	16

Answer the next 4 question based on this table.

What is the domestic consumers' gain from removing the tariff?

What is the domestic producers' loss from removing the tariff?

What is the government tariff revenue loss?

What is the net effect on national well-being?

Expert Solution

Rahul Sunny answered 2 years ago

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