Suppose the United States imposes a $10 per barrel tariff on imported refined oil products. a. what is the short run profit outlook for American refineries? what is the long term profit outlook? b....

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Suppose the United States imposes a $10 per barrel tariff on imported refined oil products.



a. what is the short run profit outlook for American refineries? what is the long term profit outlook?



b. suppose that eight years after imposing the tariff, the United States revokes it. What is likely to happen to the refining industry at that time?



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Answered Same DayDec 24, 2021

Answer To: Suppose the United States imposes a $10 per barrel tariff on imported refined oil products. a. what...

David answered on Dec 24 2021
135 Votes
a).
Redistribution Effect refers to the transfer of real income from the consumers to the producers as a result
of tariff. The tariff-imposed price increase, results in the loss of consumer's surplus. Of the total loss
suffered by the consumers, some amount is transferred to the domestic...
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