Domestic Price after Tariff

Nov 19, 2014

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Trade Creation 30. Trade Diversion: 70. Imports : 70 From US. Consumption Effect : 20. Domestic Price after Tariff. P =Z$ 80. Zambia price. P* = Z$60. World price United States. P =Z$ 40. 40. 70. 140. 160. CUSTOMS UNION WITH ZAMBIA. ZIMBABWE WATER MARKET. TARIFF OF

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Domestic Price after Tariff

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Trade Creation 30 Trade Diversion: 70 Imports : 70 From US Consumption Effect : 20 Domestic Price after Tariff P =Z$ 80 Zambia price P* = Z$60 World price United States P =Z$ 40 40 70 140 160 CUSTOMS UNION WITH ZAMBIA ZIMBABWE WATER MARKET TARIFF OF Z$ 40 IMPOSED INTERNATIONAL TRADE BEGINS P S P* =Z$100 D Q WATER MARKET Trade and welfare