Given the supply - demand function of printers in Vietnam as follows: Sx = -20000 + 250P Dx = 160000-350P Knowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece. a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case? b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam. c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?
Given the supply - demand function of printers in Vietnam as follows:
Sx = -20000 + 250P
Dx = 160000-350P
Knowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece.
a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case?
b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam.
c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?
Step by step
Solved in 5 steps with 3 images