How Does a Tariff Affect the Domestic Price of the Import

question 69

Essay

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

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Definitions:

Polygons

Closed, two-dimensional shapes composed of straight lines, with a finite number of sides.

Profit Margin

A financial ratio representing the percentage of revenue that remains as profit after all expenses have been deducted.

ROA

Return on Assets; a financial ratio indicating the profitability of a company relative to its total assets.

Total Assets

The combined value of all owned resources that have economic value and can provide future benefits to the business.