Quote:
Originally Posted by GGG
That’s only because in one case you charged your self a $33 Tarrif and the other a $25 Tarrif.
Stall if you apply the Tarrif to the retail price of the good it will be lower than if you apply it to the whole sale price of the good.
X/.8 = x*1.25
The Tarrif % would be adjusted accordingly
|
In the hypothetical case where the producer is being charged a 25% tariff they would need to increase their price by 33% to break even.
$100 * 1.33 = $133 x (1 -.25) =$100