Calculate the effect on producer surplus-consumer surplus

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Reference no: EM13152278

Suppose the steel market has inverse demand wasPD= 30 - 0.1Q, the domestic inverse supply is given byPS= 10 + 0.1Q, but the world price is $16.

1. How much steel is consumed and produced domestically?

2. Suppose tariffs of $2 were imposed. Calculate the effect on producer surplus, consumer surplus, government revenue and the deadweight loss.

Reference no: EM13152278

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