Let us consider the case of Venezuela. A tariff is imposed on imported clothes in Venezuela. In the presence of free trade, the quantity of clothes produced locally in Venezuela was 15532 per year. After the imposition of tariff, the quantity of clothes produced locally in Venezuela increased by two-fifth (2/5) or 40% compared to the estimate of the previous sentence when there was free trade. The quantity of clothes bought locally in Venezuela was 34470 per year before tariff. The quantity of clothes bought locally in Venezuela decreased by 33% in the presence of tariffs compared to what it was during free trade. a) What was the quantity sold locally per year after tariff ? Please give your answers in two decimal places b) What is the quantity of clothes imported in
Let us consider the case of Venezuela. A tariff is imposed on imported clothes in Venezuela. In the presence of free trade, the quantity of clothes produced locally in Venezuela was 15532 per year. After the imposition of tariff, the quantity of clothes produced locally in Venezuela increased by two-fifth (2/5) or 40% compared to the estimate of the previous sentence when there was free trade. The quantity of clothes bought locally in Venezuela was 34470 per year before tariff. The quantity of clothes bought locally in Venezuela decreased by 33% in the presence of tariffs compared to what it was during free trade. a) What was the quantity sold locally per year after tariff ? Please give your answers in two decimal places b) What is the quantity of clothes imported in
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 1CQQ
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