jeans from China at $20 each. With the 100% tarif the domestic price in Australia is $40. The cost in Thailand is $30. Australia and Thailand form a customs union. Australia imports 1500 pairs from Thailand and none from China. What are the net gains or losses to Australia of forming a customs

jeans from China at $20 each. With the 100% tarif the domestic price in Australia is $40. The cost in Thailand is $30. Australia and Thailand form a customs union. Australia imports 1500 pairs from Thailand and none from China. What are the net gains or losses to Australia of forming a customs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a) Assume that Australia imports 1000 pairs of
jeans from China at $20 each. With the 100% tariff,
the domestic price in Australia is $40. The cost in
Thailand is $30. Australia and Thailand form a
customs union. Australia imports 1500 pairs from
Thailand and none from China. What are the net
gains or losses to Australia of forming a customs
union?

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