Suppose Mexico imposes a tariff on imports. Import Prices increase from Pw to Pt= Pw+t Using...

Suppose Mexico imposes a tariff on imports. Import Prices increase from P_w to P_t= P_w+t Using a graph explain the following

What are the effects of imposing a tariff on Consumer Surplus?

What is the effect of imposing a tariff on Producer Surplus?

What is the effect of imposing a tariff on Government Revenues?

What is the overall effect of the tariff?

Do you think imposing high tariffs is a good idea? Why?

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Rahul Sunny answered 1 year ago

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