Suppose initially there is no customs union and that the $100
Tariff is imposed by the United States.Now, Mexico invests in
Productive technology and it shifts the Mexican supply curve to
SMex.The United States now forms a customs union with Mexico.
This will result in a price of _______ and imports of _______.
A)$250; 500
B)$250; 400
C)$150; 600
D)$150; 500

Question

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The Answer of Suppose initially there is no customs union and that the $100
Tariff is imposed by the United States.Now, Mexico invests in
Productive technology and it shifts the Mexican supply curve to
SMex.The United States now forms a customs union with Mexico.
This will result in a price of _______ and imports of _______.
A)$250; 500
B)$250; 400
C)$150; 600
D)$150; 500

Suppose Initially There Is No Customs Union and That the $100