Tariff
tax.gif

Charge imported products taxes. (here just assume charge on consumer, only affects demand curve.)

d+e=total DWL
d=DWL-CS
e=DWL-PS
b=taxes payed by consumer
c=taxes payed by producer

For a country, gains c, loses d.

Further analysis

Intuition:

We can imagine, for a big county (big market), consumers have more power relatively than producer. Then, the country is more likely to gain from tariff.

Maths:

D flatter, S steeper, c>d

In the same logic, smaller country is less likely to gain from tariff. To some point, it loses. c<d.

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