Answer in Microeconomics for Rubini Manokharan #112665
April 21st, 2023
i) the quantity consumed will decrease, the quantity produced domestically will increase, and the quantity imported will decrease after the imposition of the import fee.
ii) The imposition of the import fee will decrease consumer surplus, increase domestic
surplus, and provide additional tax revenue to the government.
iii) There will be the annual social net loss of the imposition of the import fee, because the domestic supply is more elastic than the demand, so the consumers suffer more than producers benefit.