Chile Is an Importer of Computer Chips,taking the World Price

question 206

Multiple Choice

Chile is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Chile imposes a $7 tariff on chips.Which of the following outcomes is possible?

• A)The price of chips in Chile increases to $19;the quantity of Chilean-produced chips decreases;and the quantity of chips imported by Chile decreases.
• B)The price of chips in Chile increases to $16;the quantity of Chilean-produced chips increases;and the quantity of chips imported by Chile decreases.
• C)The price of chips in Chile increases to $19;the quantity of Chilean-produced chips increases;and the quantity of chips imported by Chile decreases.
• D)The price of chips in Chile increases to $16;the quantity of Chilean-produced chips increases;and the quantity of chips imported by Chile does not change.

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Definitions:

Coca Leaves

The leaves of the coca plant, traditionally used for their stimulant effects in South America, and known for their role in the production of cocaine.

Process

A series of actions or steps taken in order to achieve a particular outcome, often involving stages or phases.

Military Movements

refer to coordinated actions and maneuvers by armed forces during training or operations, designed to achieve strategic or tactical objectives.

Position of Attention

A military posture with feet together, body erect, and eyes looking straight ahead, signaling readiness and respect.