Suppose Initially There Is No Customs Union and That the $100

question 53

Multiple Choice

Suppose initially there is no customs union and that the $100
Tariff is imposed by the United States.Now, Mexico invests in
Productive technology and it shifts the Mexican supply curve to
SMex.The United States now forms a customs union with Mexico.
This will result in a price of _______ and imports of _______.

• A)$250; 500
• B)$250; 400
• C)$150; 600
• D)$150; 500

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Definitions:

Self-governing

The capability of an organization or entity to regulate itself without external intervention.

Private Sector Organizations

Businesses and corporations operated by private individuals or entities predominantly aimed at earning profits.

Public Sector Organizations

Entities that are part of the government structure, funded by taxpayers, and serve the public interest.

Citizen Communities

Groups or networks of individuals united by geographic location or shared interests, actively participating in civic or communal affairs.