Some economists have argued that, because domestic consumers gain more from free trade than domestic producers gain from (import) tariffs and quotas, consumers should buy out domestic producers and rid themselves of costly tariffs and quotas. if this was feasible, would you be in favor? if there is a net loss to society from tariffs, why do tariffs exist?

The reason the tariffs exists:

The shift from tariff along free trade increases the consumer surplus as compared to the decline in the producer surplus. By this consumers can compensate the producers for the loss they have faced.

However,there are various other problems in relation to the shift. Generally, there will be a transaction cost of tariff besides the producer's loss surplus. There are several non economic issues that stimulates local producers to go on with tariff instead of getting compensation for the economic loss.

Generally, tariffs are imposed for any one of the following reasons,

answer; ///(c) i believe its it ignores cash flows following the payback period;

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi