A non-member can supply the same sugar at $100. Before the union, with a 40% tariff on everyone, where does the country buy?

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Question

A non-member can supply the same sugar at $100. Before the union, with a 40% tariff on everyone, where does the country buy?

Accepted Answer

Domestically at $130, since the non-member costs $140 and the partner $168 with tariff — Award 1 mark. Working: $100 × 1.4 and $120 × 1.4. The tariff applied equally to both outside sources.

Answer

From the non-member at $100, since it is the cheapest producer

Answer

Domestically at $130, since the non-member costs $140 and the partner $168 with tariff

Answer

From the partner at $120

Answer

From the non-member at $140

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