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9. To produce a boat, you need wood as an intermediate good. If this country imports both boats and wood, a 10% tariff rate can
9. To produce a boat, you need wood as an intermediate good. If this country imports both boats and wood, a 10% tariff rate can be imposed on boat imports, and a 5% tariff rate can be imposed on wood imports. The price ofa boat is $1000 before the tariff, and the price of one unit of wood is $100. Knowing that three units of wood are required to produce one boat. (a) The value added before both tariffs are imposed = (b) The value added after both tari's are imposed = (c) The value added after imposing a tariff on boats only = (d) The value added after imposing the tariff on wood only = (e) The effective rate of protection after imposing both tariffs : (f) The effective rate of protection if only},r the tariff on boats is imposed = (g) The effective rate of protection if only the tariff on wood is imposed =
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