Micro 2012 FRQ #3- Trade and Tariffs

The video tutorial covers a microeconomics exam question from 2012, focusing on domestic supply and demand for sugar, and the effects of open trade and tariffs. It explains how to calculate imports at a world price of $2, the impact of a tariff increasing the price to $4 on consumer surplus, and how to calculate tariff revenue. The tutorial concludes with a discussion on maximizing total surplus by avoiding tariffs, highlighting the differences in consumer and producer surplus with and without tariffs.

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