ES2550: Project

PROJECT DESCRIPTION—PART 2 (4.0 HOURS)

 This is where the project starts

Project Introduction: Suppose that the U.S. currently buys and produces wingdings, a fictitious economic good. The U.S. faces the world price, and domestic suppliers sell as many wingdings as possible at the world price. Now, the government succumbs to lobbying by wingding producers and imposes a protective tariff on wingdings amounting to $2 per wingding.  (it ends at PART 3 -Discuss a possible solution for minimizing harms mentioned in part b.)