Economics Hl Ia

Commentary Number 7* The Mexican government touch on a twenty percent duty on frosty stump spud products. However the obligation (a tax levied on merchandise goods, either an ad valorem tax, based on helping of the scathe, or a specific tax, based on a measured unit such as tones or bottles) was let down to phoebe bird percent and there is a casualty that it could be dropped. The responsibility is a type of protectionism (any form of follow out taken by a country whereby the ratio of the price of domestic goods to import goods decreases) that the Mexican government is using to put down the import of white potato vine and other goods such as apples, onions, frozen sweet corn. U.S. potato growers have been hardly touch 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 conglomerate possible...If you want to get a full essay, order it on our website: BestEssayCheap.com

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