The United States currently imports allof its coffee. The annual demand for coffee by U.S. consumers is given by thedemand curve Q=250-10P, where Q isquantity (in millions of pounds) and Pis the market price per pound of coffee. World producers can harvest and shipcoffee to U.S.distributors at a constant marginal (=average) cost of $8 per pound. U.S. distributorscan in turn distribute coffee for a constant $2 per pound. The U.S. coffeemarket is competitive. Congress is considering a tariff on coffee imports of $2per pound.


a. If there isno tariff, how much do consumers pay for a pound of coffee? What is thequantity demanded?


b. If the tariffis imposed, how much will consumer pay for a pound of coffee? What is thequantity demanded?


c. Calculate thelost consumer surplus.


d. Calculate thetax revenue collected by the government?


e. Does the tariffresult in a net gain or a net loss to society as a whole?


a.P=10 Q=150
b.P=12 Q=130
c.loss of CS=280
d revenue of government = 260
e loss of society = 20

小弟有没有算错阿