Question

Let's say domestic demand is QD = 16 - P, domestic supply is QS = P....

Let's say domestic demand is QD = 16 - P, domestic supply is QS = P. International prices are $2, and import duties are $3 per unit. First, draw a picture related to this, and see the following value in the picture. Each value is represented by an area in the picture.

a. Consumer surplus
b. producer's surplus
c. government revenue
d. a quadruple loss of tariffs

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