1.Suppose the free trade market price of a car is $25,000. It contains $10,000 worth of steel. The importing country imposes 40% tariff on car imports.

a.Calculate the effective rate of protection if there is no duty on steel imports.

b.Calculate the effective rate of protection if the importing country imposes a 20% tariff on steel imports.

c.Suppose it also takes $5000 worth of copper (besides $10,000 worth of steel) to produce a car. Calculate the effective rate of protection if there is no import tariff on the imports of either steel or copper.

d.Suppose there is import duty of 20% and 20% on imports of steel and copper, respectively. Calculate the effective tariff rate.