Question: Suppose that recent inflation has resulted in an increase in world prices and that all of the import values in Question 6 are increased by

Suppose that recent inflation has resulted in an increase in world prices and that all of the import values in Question 6 are increased by 25 percent (i.e., $400 becomes $500, $600 becomes $750, and so forth). Given these new values, and assuming that the quantities of each import do not change:
(a) Calculate the unweighted-average nominal tariff rate for Tarheelia.
(b) Calculate the weighted-average nominal tariff rate for Tarheelia.

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