Thursday, August 30, 2007

Unit 3: Tariffs: lightbulbs

This BBC article gives an example of a tariff inaction

http://news.bbc.co.uk/1/hi/business/6968809.stm

a) Why is the tariff imposed?
b) Draw a S&D diagram to show the effect of the tariff in the market
c) Discuss the positive and negative effects of the tarif on EU consumers, EU producers and overseas producers

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