Swaziland is considered to be a large country in this question. In 2022, the Lesotho producers of Wool increased their export by 100 per cent. To protect the Swaziland domestic wool industry, the Swaziland Minister of Trade imposed an import tariff of 15% per ounce of wool imported.

1. With the aid of a diagram, Use the partial equilibrium analysis to illustrate the effects of the protective import tariff on the Swaziland Economy. [8]

2. Is the tariff welfare improving for the Swaziland economy

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Lesotho is increasing their wool export which will increase the wool import of Swaziland When a... View the full answer