Multiple Choice
Suppose that the United States is a large country and it wishes to impose optimal tariffs on its imports of avocados, bananas, and cherries. The export supply elasticities of avocados, bananas, and cherries are 1, 2, and 3, respectively. Which of the following ranks the products on the basis of their optimal tariffs from lowest to highest tariff?
A) cherries, bananas, avocados
B) avocados, cherries, bananas
C) bananas, avocados, cherries
D) avocados, bananas, cherries
Correct Answer:
Verified
Correct Answer:
Verified
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