The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48. Assume the U.S. imposes $10 tariffs on each unit of the imported good. What will be the quantity imported? From which country? How your answer will change if the U.S. keep the $10 tariffs but join a trade bloc with Mexico? Will the country’s wellbeing increase or decrease? By how much (hint find the change in consumer surplus and the change in government revenue)? Explain your answers. $50$48$40Price51017Initial price in the U.S.Mexico priceChina priceUS demand for importQuantity (millions per year).The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48.Assume the U.S. imposes $10 tariffs on each unit of the imported good. What will be the quantity imported? From which country? How your answer will change ifthe U.S. keep the $10 tariffs but join a trade bloc with Mexico? Will the country's wellbeing increase or decrease? By how much (hint find the change in consumersurplus and the change in government revenue)? Explain your answers.

According to the above question, graph is given as

Answered: $50 $48 $40 Price 5 10 17 Initial price…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48. Assume the U.S. imposes $10 tariffs on each unit of the imported good. What will be the quantity imported? From which country? How your answer will change if the U.S. keep the $10 tariffs but join a trade bloc with Mexico? Will the country’s wellbeing increase or decrease? By how much (hint find the change in consumer surplus and the change in government revenue)? Explain your answers.

$50
$48
$40
Price
5
10
17
Initial price in the U.S.
Mexico price
China price
US demand for import
Quantity (millions per year).
The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48.
Assume the U.S. imposes $10 tariffs on each unit of the imported good. What will be the quantity imported? From which country? How your answer will change if
the U.S. keep the $10 tariffs but join a trade bloc with Mexico? Will the country's wellbeing increase or decrease? By how much (hint find the change in consumer
surplus and the change in government revenue)? Explain your answers.

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