Managerial Economics Week 3 Discussion


The Charge Elasticity of Claim and Tariffs

In this week's discourse your are going to be the CEO of a concourse.  You succeed possess to teach to your Consultation of Director how designed tariffs succeed enjoyly commodities your returns. First, choice one concourse.

Fresh Foods on the Move - Fresh Foods on the Move imports fruits and vegetables from Mexico for sale to large manufacturers who manner those products which are easily sold in grocery stores in the US. The charge springyity of claim for prop in a monied state enjoy the US is almost 0.15.

We Build Big - We Build Big is one of the largest developers of residential make in the US.  We Build Big, builds total being from hall complexes to new separate nativity homes.  Critical materials such as crowd, gypsum consultation, produce metal etc are easily redundant twain Canada and Mexico.  The charge springyity of claim for housing is 1.0.

Any US Auto Maker - Any US Auto Maker motor concourse is one of the oldest and one of the largest auto manufacturers in the US.  The Any US Auto Maker provide fetter ill-conditionedes twain the Canadian and the Mexican consultationer and size of total car assembled in the US may ill-conditioned the consultationer and pay a tariff multiple times.  The charge springyity for automobiles is 1.2.

Now teach:

  • Is the claim deflexion proportionately springy, inspringy or unitary springy.  For total 10% growth in the charge of the good-natured-natured you retail, how ample does the quantity claimed lower?
  • Given the quality of springyity your concourse faces would you commend to the Consultation that you ignoring on to the consumer: none of the consume growths from the tariff; some of th consume growth from the tariff; all of consume growths from the tariff?
  • Why is this diplomacy use maximizing underneathneath the requisite?