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Hi, can someone help me with the following exercise? 3. (20 Points) In July 2018, the 'frump administration placed significant tariffs on U.S. imports from
Hi, can someone help me with the following exercise?
3. (20 Points) In July 2018, the 'frump administration placed significant tariffs on U.S. imports from China of several goods. The graph below shows how b;eline priccys of imports (before tariffs are added) from China have changed since tariffs were imposed, prices Of import goods from Other countries are included for comparison. Import Prices for Chinese Goods Unaffected by Tariffs June - 2012 2013 2015 2017 7119 (a) (3 Points) Based on these graphs, does it look like the tariffs caused the U.S. terms of trade with China to improve? What in the graph supports your answer? (b) (7 Points) Based on your answer to (a), who bore the burden of the tariff? Show the welfare implications in a graph of US supply and demand for electrical appliances (which the U.S. imports from China). China retaliated to the U.S. tariffs with a high tariffs on agricultural products like soybeans. After these tariffs were imposed in the middle of 2018, the prices (before tariffs) of U.S. goods exported to china (like soybeans) fell: 12/17 03/18 oona 09/18 03/19 06.0 9 09/19
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