To produce a boat you need wood as an intermediate good if


To produce a boat, you need wood as an intermediate good. If this country imports both boats and wood, a 10%  tariff rate can be imposed on boat imports, and a 5% tariff rate can be imposed on wood imports. The price of a boat is $1000 before the tariff, and the price of one unit of wood is $100. Knowing that three units of wood are required to produce one boat.

e) The effective rate of protection after imposing both tariffs =

f) The effective rate of protection if only the tariff on boats is imposed =

g) The effective rate of protection if only the tariff on wood is imposed =

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Business Economics: To produce a boat you need wood as an intermediate good if
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