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$ 2.25 -World price 2.00 60 70 130 140 Q/millions bushels Figure 6.1

9) Based on Figure 6.1, how much revenue will the government raise from a $0.25 per bushel tariff on soybean imports? A) The

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Answer #1

Q9
Answer
after tariff price =2.25
Qd=130 and Qs=70
Import =Qd-Qs=130-70
=60 million
tax revenue =import * tariff
=60*0.25
=15 million

Option B
==========
Q10
Answer
the deadweight loss =0.5* change in Qd*tariff +0.5* change inn Qs * tariff

before tax
P=2, Qd=140 and Qs=60

DWL=0.5*(70-60)*0.25+0.5*(140-130)*0.25
=$2.5 million

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