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Suppose the market for wine in the U.S. is characterized by:
Qd = 100 20P [Demand]
Qs = 20 + 20P [Supply]
The market for wine in the rest of the world is characterized by:
Qd = 80 20P [Demand]
Qs = 40 + 20P [Supply]
Calculate the deadweight loss if the U.S. imposes a prohibitive tariff per unit of imported wine.
[Note: P = price per unit; Qd = billions of units demanded; Qs = billions of units supplied]
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