The Following Formula Is Used to Estimate the Deadweight Loss

question 52

Multiple Choice

The following formula is used to estimate the deadweight loss from a
Tariff:.
Where PM is import value;
Is the world price and M is the volume
Of imports.
Suppose that the United States imposes a 20% antidumping duty on
Chinese steel imports when the world price is $500 per ton, the value
Of imports with the duty is $400 million, and the volume of imports
With the duty fell by 10%.Which of the following is the deadweight
Loss?

• A)$0.01 million
• B)$0.10 million
• C)$4.0 million
• D)$8.0 million

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