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laila [671]
3 years ago
5

what is the producers surplus when barylia engages in trade and the government imposes a tariff of $1

Business
1 answer:
ivolga24 [154]3 years ago
4 0

Answer: $20

Explanation:

When the Government introduces a tariff, it will have the effect of reducing competition for the local producers because import prices will now be higher.

The Producer surplus before the tariff was <em>G</em> because they were forced to sell at the global price. With the imposition of the tariff, the price went to $4 or rather P2. This then increased Producer Surplus to include area <em>F </em>as well.

The total Producer Surplus is therefore, <em>F + G.</em>

This is a triangle so it will be solved for the area by the formula;

= \frac{1}{2} * base * height

= \frac{1}{2} * 20 * ( 4 -2)

= 10 * 2

= $20

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2 years ago
Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production da
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3 years ago
What is the price of a coupon bond that has annual coupon payments of​ $85, a par value of​ $1,000, a yield to maturity of​ 10%,
lukranit [14]
Let p be the price of the bond.
Annual coupons payment = 85
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4 years ago
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