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Author Question: -2 Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure ... (Read 116 times)

jrubin

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Figure 7-2








Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 7-2 shows the impact of this tariff.  






Refer to Figure 7-2. The increase in domestic producer surplus as a result of the tariff is equal to


◦ $11.25 million.
◦ $18 million.
◦ $32.5 million.
◦ $45 million.


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Marked as best answer by jrubin on Mar 16, 2019

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