tariff on automobiles Suppose the United States increases the tariff on automobiles imported from Germany (and other foreign countries) What is the effect of this tariff-rate increase on a) the price...

tariff on automobiles

Suppose the United States increases the tariff on

automobiles imported from Germany (and other foreign countries) What is the effect

of this tariff-rate increase on

a) the price

of automobiles in the United States;

b) the total

number of cars sold in the US during the year;

c) the

number of cars produced by and employment in the German automobile industry;

d) production

by and employment in the US automobile industry;

e) German

income obtained by selling cars in the US;

f) the

German demand for goods produced in the US;

g) the

production of and employment in those US industries that now export goods to

Germany;

h) the

allocation of resources in the US economy; and

i) the

allocation of the world’s resources?