Consider an economy that used to operate in free trade, with total market surplus of $120 million.As a result of the application of a tariff (tax on imports), the economy experiences deadweight lossof $8 million.That means that total market surplus for this nation is now $million.Enter only a number and decimal point/negative sign as needed. Round your answer to two decimalplaces as necessary. Notice that the answer is in terms of millions, so if you think total market surplus isnow 999 million (999,000,000), enter only 999 in the blank.

It can be described as the Economic benefit of both the economic agent (buyer and the producer)…

Answered: Consider an economy that used to…

Consider an economy that used to operate in free trade, with total market surplus of $120 mil As a result of the application of a tariff (tax on imports), the economy experiences deadweight illi

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: International Trade And Finance

Section: Chapter Questions

Problem 18SQ

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Question

Consider an economy that used to operate in free trade, with total market surplus of $120 million.
As a result of the application of a tariff (tax on imports), the economy experiences deadweight loss
of $8 million.
That means that total market surplus for this nation is now $
million.
Enter only a number and decimal point/negative sign as needed. Round your answer to two decimal
places as necessary. Notice that the answer is in terms of millions, so if you think total market surplus is
now 999 million (999,000,000), enter only 999 in the blank.

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