You are given the following information about copper in the United States:
Situation Situation
With Tariff Without Tariff
World Price $0.40 per lb. $0.50 per lb.
Tariff (specific) $0.20 per lb . 0
US Domestic Price $0.60 per lb. $0.50 per lb.
US Consumption 210 million lb. 250 million lb.
US Production 140 million lb. 100 million lb.
a. Calculate the loss to US consumers of copper from imposing the tariff.
b. Calculate the gain to US producers of copper from imposing the tariff.
c. Calculate the gain in tariff revenue to the US government from imposing the tariff.
d. Calculate the net gain or loss to the US economy as a whole from imposing the tariff.