Class Exercise Effective Rate of Protection Suppose that desks sell for S500 in free trade Suppose desks are made out of wood, and that the wood needed to produce 1 desk costs $250 I. Suppose initially there is a 20% tariffon desks, calculate the NRP Use NRP = (Pb-PDFT)/ PDFT 2. Suppose there are 20% tariffs on both desks and wood, calculate ERP Use ERP-(VAVTWAT where VA- price of good price of inputs 3. Suppose instead free trade in wood, but a 30% tariff on desks, calculate ERP 4. Suppose instead free trade in desks, but a 20% tariff on wood, calculate ERP