After you have studied Economics in the News on pp. 172–173, answer the following questions.

a. What was the value of U.S. imports from Mexico in 2015 and why would the value of imports fall if a 20 percent tariff were imposed on them?

b. How do the elasticities of demand and supply influence the revenue that a tariff generates?

c. Who in the United States would benefit and who would lose from a 20 percent tariff on imports from Mexico?

d. Illustrate your answer to part

(c) with an appropriate graphical analysis.