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2)Jordan is a low-cost producer of wheat ($4 per bushel), Egypt a medium-cost producer ($6 per bushel), and Syria a high-cost producer ($8 per bushel).
2)Jordan is a low-cost producer of wheat ($4 per bushel), Egypt a medium-cost producer ($6 per bushel), and Syria a high-cost producer ($8 per bushel). Both Syria and Egypt maintain tariffs against all wheat imports. Suppose Syria forms a customs union with Egypt, consider the following two scenarios:
i)(4 pts) Suppose that Syria's initial tariff was $5 per bushel. Will this be good or bad for Syria? Explain.
ii)(4 pts) Suppose that Syria's initial tariff was $3 per bushel. Will this be good or bad for Syria? Explain.
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