The graph above is the U.S. market for some imported good. Supply is a flat curve....

  

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The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48. Assume the U.S. imposes $10 tariffs on each unit of the imported good. What will be the quantity imported? From which country? How your answer will change if the U.S. keep the $10 tariffs but join a trade bloc with Mexico? Will the country's wellbeing increase or decrease? By how much (hint find the change in consumer surplus and the change in government revenue)? Explain your answers. $50 $48 $40 Price 5 10 17 Initial price in the U.S. Mexico price China price US demand for import Quantity (millions per year) The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48. Assume the U.S. imposes $10 tariffs on each unit of the imported good. What will be the quantity imported? From which country? How your answer will change if the U.S. keep the $10 tariffs but join a trade bloc with Mexico? Will the country's wellbeing increase or decrease? By how much (hint find the change in consumer surplus and the change in government revenue)? Explain your answers. $50 $48 $40 Price 5 10 17 Initial price in the U.S. Mexico price China price US demand for import Quantity (millions per year)

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Answer If US imposes tariff of imported good then there will be no import as p... View the full answer