Question

Under free trade, a large country produces 1 million leather bags per year and imports another 2 million bags per year at the world price of $60 per bag. Assume that the country imposes a specific tariff of $5 per bag. As a result, the per-unit price of leather bags decreases to $58 in the international market, and the import of leather bags drops to 1.6 million. The domestic production, on the other hand, increases to 1.1 million.

Following the imposition of the tariff, the domestic consumers pay a price of ___ for each bag.