We have always focused on the impact of the elasticity of the export supply curve on optimal tariff, now let us focus on the elasticity of the import demand curve. If the foreign export supply is less than the perfectly price elastic foreign export supply curve, will the optimal tariff increase or decrease as the price elasticity of demand increases? Why?

You are looking at a one-year loan of $16,500. the interest rate is quoted as 8.7 percent plus two points. a point on a loan is 1 percent (one percentage point) of the loan amount. quotes similar to this one are common with home mortgages. the interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 8.7 percent interest. what rate would you actually be paying here?