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....

ANSWER
In the short run, the American refineries will witness an increase in demand and hence an increase in
profit. This is because an imposition of tariff on the imported products will increase the price of
those products. The local goods will be more attractive to the consumer. This can be understood
with the help of an example. Suppose the price of local goods is $30 while the price of imported
goods is $25, an imposition of $10 tariff will increase the price of imported goods to $35. This will
attract a consumer to the...