Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the government impose an import quota instead? Explain your answer and use a graph to support your arguments At the start of the COVID-19 pandemic, the Indonesian government temporarily eliminated importtariffs on disposable (single use) surgical masks. As a result, the domestic demand for disposablesurgical masks were fulfilled by domestic production and imports. By July 2020, 99 million surgicalmasks valued at Rp400 billion were imported to Indonesia (Kompas, 16 July 2020). That same month,industry representatives asked the government to restore the import tariff on surgical masks. Assumethat if the tariff is restored, there will still be import of surgical masks.

Welfare impact: It refers to the impact of the government policy on the economy. It takes into…

Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the government impose an import quota instead? Explain your answer and use a graph to support your arguments

Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the government impose an import quota instead? Explain your answer and use a graph to support your arguments

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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