Scenario 1: For similar bicycles sold on the world market, the free trade price is $1,438. Many of the parts used to make the bicycle are imported. The cost of imported parts is $518. Scenario 2: There is a tariff of $80 imposed on imported inputs used to make bicycles.

This question is a follow-up to the previous question. a) what is the NRP for scenario 1 in the question above? b) what is the NRP for scenario 2 in the question above? c) what is the ERP for scenario 2 in the question above? d)Interpret the values you calculated for NRP in parts a and b. (Hint: what do these values of NRP mean for domestic producers of the final good?) Does the value for the NRP change between parts a and b? Why or why not? e) Interpret the values you calculated for ERP in the question above and in part c. (Hint: what do these values of ERP mean for domestic producers of the final good?) Does the value for the ERP change between the question above and part c? Why or why not