Let us consider the case of Venezuela. A tariffis imposed on imported clothes in Venezuela.In the presence of free trade, the quantity ofclothes produced locally in Venezuela was15540 per year. After the imposition of tariff, thequantity of clothes produced locally inVenezuela increased by two-fifth (2/5) or 40%compared to the estimate of the previoussentence when there was free trade. Thequantity of clothes bought locally in Venezuelawas 34472 per year before tariff. The quantityof clothes bought locally in Venezueladecreased by 33% in the presence of tariffscompared to what it was during free trade.a)What was the quantity sold locally peryear after tariff ?Please give your answers in two decimalplaces.b)What is the quantity of clothes importedin Venezuela in a month on average afterthe imposition of the aforementioned tariff?Please give your answers in two decimalplaces.c)What is the percentage change in thequantity of clothes imported in Venezuelaper year after the imposition of theaforementioned tariff compared to freetrade?Please give your answers in absolute valuewithout percentage sign and in two decimalplaces. If your answer is -56.3452% write56.35

Given : Quantity produced locally before tariff imposition : 15540 per year Quantity produced…

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 Venezuela in a month on average after the imposition of the aforementioned tariff? Please give your answers in two decimal places. c)What is the percentage change in the quantity of clothes imported in Venezuela per year after the imposition of the aforementioned tariff compared to 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 Venezuela in a month on average after the imposition of the aforementioned tariff? Please give your answers in two decimal places. c)What is the percentage change in the quantity of clothes imported in Venezuela per year after the imposition of the aforementioned tariff compared to free trade?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter21: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 6DQ

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