Illustrate what is the products price after the imposition

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Reference no: EM1350442

suppose that the free=trade price of a domestic product is $10,000 and contains 25% imported components.Assume that the tariff on the final product is 10% and a 5% tariff is imposed on the imported components.

a) Illustrate what is the products price after the imposition of the tariff?

b) what is the domestic value added before and after the imposition of the tariff?

c) what is the effective rate of protection?

Reference no: EM1350442

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