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Business, 09.11.2019 06:31 krissymonae

The united states currently imports all of its coffee. suppose the annual demand for coffee by u. s. consumers is given by the demand curve qequals=240240minus−55p, where q is quantity (in millions of pounds) and p is the market price per pound of coffee. world producers can harvest and ship coffee to u. s. distributors at a constant marginal (equals=average) cost of $66 per pound. u. s. distributors can in turn distribute coffee for a constant $11 per pound. the u. s. coffee market is competitive. congress is considering a tariff on coffee imports of $22 per pound. a) if there is no tariff, how much do consumers pay for a pound of coffee? what is the quantity demanded? b) if the tariff is imposed, how much will consumers pay for a pound of coffee? what is the quantity demanded? c) calculate lost consumer surplus. d) calculate the tax revenue collected by the government. e) does the tariff result in a net gain or a net loss to society as a whole?

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