India has a 70 percent tariff on imported chocolate. a. Sketch a diagram to show the impact

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India has a 70 percent tariff on imported chocolate.

a. Sketch a diagram to show the impact of this tariff on the price of imported chocolate in India.

b. Suppose India cuts the tariff to zero but imposes a quota that results in the same high price for imported chocolate. Show this in a diagram.

c. From the government’s perspective, is it better off with a tariff or with a quota? Explain.

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Principles Of Macroeconomics

ISBN: 9781453334980

9th Edition

Authors: John B. Taylor, Akila Weerapana

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Question Posted: Oct 19, 2024 06:02 AM

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India has a 70 percent tariff on imported chocolate. a. Sketch a diagram to show the impact

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Principles Of Macroeconomics

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