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$40Price51017Initial price in the U.S.Mexico priceChina priceUS demand for importQuantity (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 ifthe 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 consumersurplus and the change in government revenue)? Explain your answers.

According to the above question, graph is given as

Answered: $50 $48 $40 Price 5 10 17 Initial price…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 7PA

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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.

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