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Background information to this question this question is about the sneaker market in the US. New Balance produces in US. Nike imports. Here are your questions: 1.Draw the US sneaker market in autarky. Add imports (at cheaper world prices). a clear graph 2.Add a 48% tariff on sneakers (so that the world price even with the tariff is still below the US autarky price). 3.Mark the Consumer Surplus and government revenue (after tariff). 4.Use your diagram to show why New Balance likes the tariff. 5.Bonus: Use diagram to show why Nike does not like tariff--make a graph please

Background information to this question this question is about the sneaker market in the US. New Balance produces in US. Nike imports. Here are your questions: 1.Draw the US sneaker market in autarky. Add imports (at cheaper world prices). a clear graph 2.Add a 48% tariff on sneakers (so that the world price even with the tariff is still below the US autarky price). 3.Mark the Consumer Surplus and government revenue (after tariff). 4.Use your diagram to show why New Balance likes the tariff. 5.Bonus: Use diagram to show why Nike does not like tariff--make a graph please

Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 4CQQ
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Background information to this question

  • this question is about the sneaker market in the US.
  • New Balance produces in US. Nike imports.

Here are your questions:

1.Draw the US sneaker market in autarky. Add imports (at cheaper world prices). a clear graph

2.Add a 48% tariff on sneakers (so that the world price even with the tariff is still below the US autarky price).

3.Mark the Consumer Surplus and government revenue (after tariff).

4.Use your diagram to show why New Balance likes the tariff.

5.Bonus: Use diagram to show why Nike does not like tariff--make a graph please

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