Explore BrainMass
Share

tariff on automobiles

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Suppose the United States increases the tariff on automobiles imported from Germany (and other foreign countries). What is the effect of this tariff-rate increase on
a) the price of automobiles in the United States;
b) the total number of cars sold in the U.S. during the year;
c) the number of cars produced by and employment in the German automobile industry;
d) production by and employment in the U.S. automobile industry;
e) German income obtained by selling cars in the U.S;
f) the German demand for goods produced in the U.S;
g) the production of and employment in those U.S. industries that now export goods to Germany;
h) the allocation of resources in the U.S. economy; and
i) the allocation of the world's resources?

© BrainMass Inc. brainmass.com October 17, 2018, 12:20 am ad1c9bdddf
https://brainmass.com/economics/employment/tariff-on-automobiles-290613

Solution Preview

Suppose the United States increases the tariff ........................

Suppose the United States increases the tariff on automobiles imported from Germany (and other foreign countries). What is the effect of this tariff-rate increase on
a) the price of automobiles in the United States;
The price of automobiles in the United States will go up.
b) the total number of cars sold in the U.S. during the year;
The total number of cars sol in the US will go down. Remember the price level will increase. (law of demand).
c) the number of cars ...

Solution Summary

This explanation provides you a comprehensive argument relating to tariff on automobiles

$2.19
Similar Posting

Essay 4Name and explain the concept of tariff barriers and name and explain one reason countries maintain trade barriers, such as tariffs, and state whether or not this reason is justified and why or

Name and explain the concept of tariff barriers and name and explain one reason countries maintain trade barriers, such as tariffs, and state whether or not this reason is justified and why or why not. What is the impact of these barriers on the efficient allocation of a country's resources? What is the impact on the consumers that purchase the items to which the barriers apply?

View Full Posting Details