The principle benefit of tariff protection goes to A) domestic ...

[tuffie]

The principle benefit of tariff protection goes to
 
  A) domestic consumers of the good produced.
  B) foreign consumers of the good produced.
  C) domestic producers of the good produced.
  D) foreign producers of the good produced.
  E) the domestic government.

Question 2

Assume:
 
  C = 40 + 0.8(Y - T)
  G = 10
  I = 20
  T = 0, where T are taxes.
  (a) Calculate Y at equilibrium.
  (b) Calculate C, I, and G at equilibrium.
  (c) Now assume,
  EX = 5 + 4EP /P
  IM = 10 + 0.1 (Y - T) - 3EP /P
  E = 3
  P = 1.5
  P = 2
  Find equilibrium Y.

[johnharpe]

Answer to Question 1

C

Answer to Question 2

(a) Y = C + I + G
Y = 350
(b) C = 40 + 0.8 Y = 320
I = 20
G = 10
(c) Y = 269.1667

[tuffie]

Excellent

[Joy Chen]

Thanks for the timely response, appreciate it