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Consider a product, Trappist file, that typically sells for $10 a bottle in Belgium, but for which inputs sourced from abroad cost $5 {the monks
Consider a product, Trappist file, that typically sells for $10 a bottle in Belgium, but for which inputs sourced from abroad cost $5 {the monks do provide their own hops and prayers). Calculate: (a) the effective rate of protection if a 10% tariff is imposed on the final sales price of beer; (b) the effective rate of protection if a 10% tariff is imposed on the imported inputs; (c) a 10% tariff is imposed on both final prices and imported inputs? \
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