This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose Canada has a 20% tariff on the import of carpets, and Canada currently imports this product ... (Read 87 times)

Ale

  • Full Member
  • ***
  • Posts: 125
on: Oct 12, 2022
Suppose Canada has a 20% tariff on the import of carpets, and Canada currently imports this product from India at a with-tariff price of $22. The with-tariff price of identical carpets from the United States is $24. Now suppose a free-trade agreement with the U.S. eliminates the tariff and so the no-tariff price from the U.S. is $20. Canada now purchases carpets from the U.S. Is Canada made better off from this trade diversion?
◦ Yes, because Canadian consumers are paying less for carpets and consumer surplus has increased.
◦ No, because before the agreement Canada was buying from India at a lower (pre-tariff) price and collecting tariff revenue.
◦ No, because it would still be cheaper for individual consumers to buy carpets from India.
◦ Yes, because Canada has diverted trade toward the United States.
◦ Canada is not better or worse off. The gain in consumer surplus in Canada is identical to the loss in tariff revenue to the Canadian government.
Microeconomics ¦ Ragan ¦ 17th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Ale on Oct 12, 2022

hiyayyay

  • Full Member
  • ***
  • Posts: 204
Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


Ale

  • Member
  • Posts: 125
Reply 2 on: Oct 12, 2022
Wow, this really help

atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Tuktut Nogait National Park, Northwest Territories, Canada Tuktut Nogait National Park, Northwest Territories, Canada
Permafrost is found in much of Northern Canada Permafrost is found in much of Northern Canada
How to use the product rule to find the derivative of a function How to use the product rule to find the derivative of a function
Sources of industrial solid waste in Canada Sources of industrial solid waste in Canada
The phenotype of an organism is the product of interactions The phenotype of an organism is the product of interactions
The functional role of pRB. The pRB protein product of RB1 The functional role of pRB. The pRB protein product of RB1
Video: Role of transport in a cell

For a complete list of videos, visit our video library