Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hello, I'll like to know the answer of this exercise. thank you Suppose that the United States currently imports baseball bats without tariff, with the

hello, I'll like to know the answer of this exercise.

thank you

image text in transcribed
Suppose that the United States currently imports baseball bats without tariff, with the results shown in the first column of numbers below. Congress is thinking of imposing a tariff of $35 per bat and has asked you to estimate the gains and losses to different groups. You find that the $35 tariff would yield the prices and quantities shown in the right-hand column. In the following questions, explain your answers, and give numerical results if possible. Free-trade situation Situation with $35 (no tariff) tariff on bats U.S. domestic price of bats $80 $100 Tariff SO $35 World price of bats $80 $65 U.S. production of bats per year 160,000 220,000 U.S. imports of bats per year 200,000 100,000 U.S. consumption of bats per 360,000 320,000 year a. What is the gain or loss to U.S. bat buyers from the tariff? b. What is the gain or loss to U.S. bat producers from the tariff? c. What is the government revenue from the tariff? d. What is the net gain or loss for the U.S. as a whole? e. What is the net gain or loss for other countries

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Economics questions