Answer:
1. $2 per household per year
2. $2,500 per sugar producer per year
Explanation:
The computation is shown below:
1. The gross cost per household per year is shown below:
= Loss in consumer surplus due to the tariff ÷ Total number of households
= $100,000 ÷ 50,000 households
= $2 per household per year
2. The policy's benefit is
= Total gain in producer surplus ÷ number of sugar producers
= $25,000 ÷ 10 sugar producers
= $2,500 per sugar producer per year
