Economics Hl Ia

Commentary Number 7* The Mexican government quick-frozen a twenty percent duty on frozen stump spud products. However the obligation (a tax levied on merchandise goods, either an ad valorem tax, based on voice of the cost, or a specific tax, based on a measured unit such as tones or bottles) was take down to phoebe bird percent and there is a theory that it could be dropped. The duty is a type of protectionism (any form of meet taken by a country whereby the ratio of the price of domestic goods to import goods decreases) that the Mexican government is using to discredit the import of white potato vine and other goods such as apples, onions, frozen sweet corn. U.S. potato growers have been hardly unnatural by the tariff. The effects of the tariff are shown in plot 1. Diagram 1: reduce in Mexico potato tariff P($) S Price P1 S US + tariff 1 ($) P2 S US + tariff 2 P S US D ! 0 Q3 Q5 Q4 Q Q1 Q2 Q (tons of potatoes) Potatoes (tons) The tariff imposed by the Mexican government lowered the supply (the amount of goods and go that producers are willing and able to sell at different possible...If you want to get a full essay, order it on our website: BestEssayCheap.com

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