6. Suppose Country 1 imposes a 50% tariff on imported computers. With the tariff in place, what is the lowest price (in terms of burritos) consumers in Country 1 could hope to pay for an imported computer? (Hint: the lowest price is based on negotiating the best possible terms of trade with Country 2.)
  1. 1 burritos.
  2. 1.5 burritos.
  3. 2 burritos.
  4. 3 burritos.
  5. 4.5 burritos.
Country 1 Country 2
Burr. Comp. Burr. Comp.
150 0 100 0
120 10 80 20
90 20 60 40
60 30 40 60
30 40 20 80
0 50 0 100


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