Managerial EconomicsSalvatore’s Chapter 9Problem 7From figure 9-4 determine the effect of a 33 percent import tariff on commodity XThe tariff-inclusive price will be $3(1+.33) = $4. What are the...

Managerial EconomicsSalvatore’s Chapter 9Problem 7From figure 9-4 determine the effect of a 33 percent import tariff on commodity XThe tariff-inclusive price will be $3(1+.33) = $4. What are the impacts of tariff on domesticconsumption, domestic production, imports, and government’s tariff revenue? Show thenumbers; for example, at figure 9-4, if you draw a line starting at Px=$4 and parallel to the Xaxis, it will cross the demand curve, Dx, at 500X. Therefore, you know that the domesticconsumption will decrease from 600X to 500X.Froeb et al.’s Chapter 99-3Snack food vendors and beer distributers earn some monopoly profits I their local markers butsee them slowly erode from various new substitutes. When California voted on legalizingmarijuana, which side would you think that California beer distributors were on? What aboutsnack food vendors? Why?9-4Relative to managers in more monopolistic industries are managers in more competitiveindustries more likely to spend their time on reducing costs or on pricing strategies?11-4How does a decrease in U.S. interest rates affect the EU/U.S. exchange rate?Use the carry trade to predict the impact of lower U.S. interest rates on Euro/$11-5 How will a dollar devaluation affect businesses and consumer sin the twin cities of El Paso,United States, and Juarez, Mexico?Make sure you explain the impact on the twin cities no just 1 city.