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Answer 5-7 based upon the following diagram which depicts country A's market for its importable. P S + Tariff SE + Tariff e d S,
Answer 5-7 based upon the following diagram which depicts country A's market for its importable. P S + Tariff SE + Tariff e d S, k S 20 30 40 50 60 80 100 120 5. If A imposes a per unit tariff of $10 on imports from both B and C, it will import (a) 40 units from B. (b) 10 units from C. (c) 40 units from each. (d) 40 units from B and 10 units from C. 6. Domestic producers of this product in A would most prefer (a) a customs union with C. (b) a customs union with B. (c) a free trade agreement with both B and C. (d) no agreement with either country. 7. Domestic consumers of this product in A would most prefer (a) a customs union with C. (b) a customs union with B. (c) a free trade agreement with C. (d) no agreement with either country
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