Tariff HL Calculation Practice

Given the following Domestic Supply/Demand functions:

Qd = 500 4P
Qs = -100 +2P
The World Supply/price: $60
Domestic Government imposes a Duty/Tariff = $15 per unit
1. Graph the following Supply and Demand function
2. Show the World Supply/Price on the graph.
3. Calculate the Price and Quantity equilibrium and show it on your
graph.

Assuming free trade:

1. State the amount of Domestic Production

2. State the amount of Domestic Consumption/Quantity Demanded

3. Calculate the amount of imports

Government imposes a per unit duty/tariff of $15 per unit.

Show this on your graph.
1. State the amount of Domestic Production

Tariff HL Calculation Practice

2. State the amount of Domestic Consumption/Quantity Demanded

3. Calculate the amount of imports

4. Calculate the amount of increase/decrease in domestic

production after duty/tariff.

5. Calculate the amount of increase/decrease in domestic

consumption after the duty/tariff.

6. Calculate the amount of increase/decrease in domestic

consumption after the duty/tariff.

7. Calculate the Consumer Surplus with free trade.

Tariff HL Calculation Practice

8. Calculate the Producer Surplus with free trade.

9. Calculate the Consumer Surplus after the duty/tariff is imposed.

10.
Calculate the Producer Surplus after the duty/tariff is
imposed.

Tariff HL Calculation Practice

11.
Calculate the amount of government revenue gained by
the government after duty/tariff is imposed.

12.
Calculate the Total Welfare Loss the imposition of the tariff
created.