20 21 2 points Suppose a domestically produced motor bicycle sells at a world price of...

 

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20 21 2 points Suppose a domestically produced motor bicycle sells at a world price of $20,000 under unrestricted trade. The domestic producer uses $5000 worth of imported inputs. Suppose now that the 10 percent tariff on finished motor bicycles is accompanied by a 5 percent tariff on imported components used in the domestic production of motor bicycles. [Note for all questions: you need to write numbers in your answers, so you would write 10% as 0.10] [Round your answer to 3 decimal places where appropriate] What is the value of the new ERP? Type your answer... 2 points Suppose a domestically produced motor bicycle sells at a world price of $20,000 under unrestricted trade. The domestic producer uses $5000 worth of imported inputs. Suppose a 10 percent ad valorem (on the value) tariff is imposed on the imported motor bicycle. [Note for all questions: you need to write numbers in your answers, so you would write 10% as 0.10] [Round your answer to 3 decimal places where appropriate] What is the domestic price of the imported motor bicycle? Type your answer... 20 21 2 points Suppose a domestically produced motor bicycle sells at a world price of $20,000 under unrestricted trade. The domestic producer uses $5000 worth of imported inputs. Suppose now that the 10 percent tariff on finished motor bicycles is accompanied by a 5 percent tariff on imported components used in the domestic production of motor bicycles. [Note for all questions: you need to write numbers in your answers, so you would write 10% as 0.10] [Round your answer to 3 decimal places where appropriate] What is the value of the new ERP? Type your answer... 2 points Suppose a domestically produced motor bicycle sells at a world price of $20,000 under unrestricted trade. The domestic producer uses $5000 worth of imported inputs. Suppose a 10 percent ad valorem (on the value) tariff is imposed on the imported motor bicycle. [Note for all questions: you need to write numbers in your answers, so you would write 10% as 0.10] [Round your answer to 3 decimal places where appropriate] What is the domestic price of the imported motor bicycle? Type your answer...

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The image shows two questions that are related to the economic effects of tariffs on motor bicycles Here is what the questions are asking Question 20 ... View the full answer