Scenario 6.1 Suppose That United States Furniture Makers Import $100 of Wood

Multiple Choice

Scenario 6.1
Suppose that United States furniture makers import $100 of wood and parts in order to make a dining room table selling for $500.The imports have no tariff of quota restrictions.
-Based on Scenario 6.1 above,if a tariff of 20 percent is placed on imports of dining room tables,and another tariff of 50 percent is placed on imports of wood and parts,then the effective rate of protection on tables made in the United States is

A) 70 percent.
B) 50 percent.
C) 20 percent.
D) 12.5 percent.
E) 0 percent.