Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 6 pts Notes: - Provide your answers as a whole number {e.g.. 60 and NOT 60.0, 60%, 0.60. or $60]. Incorrectly submitted answers

image text in transcribed
Question 4 6 pts Notes: - Provide your answers as a whole number {e.g.. 60 and NOT 60.0, 60%, 0.60. or $60]. Incorrectly submitted answers will be counted incorrect. Suppose a good is produced in a country from a combination of foreign parts and domestic inputs. If the good sells for $9130 but requires $400 of imported parts. The domestic value added is $l 500 l. Assuming the country cannot change the world price, a 10% tariff on the nal good will cause the domestic price to rise to $l 99\" l and cause the domestic value added to become $l 595' l . In this case, the effective rate of protection is 18 l %_ If, in addition to the 10% tariff on the nal good, a 10% tariff on imported parts is levied. the effective rate of protection for domestic manufacturers becomes 1'3 9'6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Principles Of Microeconomics

Authors: N Gregory Mankiw

7th Edition

1305081676, 9781305081673

More Books

Students also viewed these Economics questions

Question

8 Explain how marketers assess promotional effectiveness.

Answered: 1 week ago

Question

Relax your shoulders

Answered: 1 week ago

Question

Keep your head straight on your shoulders

Answered: 1 week ago