Question 1
Tea from Britain costs $2.50 to produce. It is sold in America at a price of $3.50 (to make a profit of $1.00)

Tea in America costs $3.00 to produce. It is sold at a price of $4.00 (to make a profit of $1.00)

If a 50% Tariff is enacted by the American government, how much does Tea from America cost?

a
$3.50
b
$6.00
c
$4.00
Question 2
Tea from Britain costs $2.50 to produce. It is sold in America at a price of $3.50 (to make a profit of $1.00)

Tea in America costs $3.00 to produce. It is sold at a price of $4.00 (to make a profit of $1.00)

If there is a 50% Tariff on tea, who would you buy your tea from?

a
America
b
Britain
Question 3
Tea from Britain costs $2.50 to produce. It is sold in America at a price of $3.50 (to make a profit of $1.00)

Tea in America costs $3.00 to produce. It is sold at a price of $4.00 (to make a profit of $1.00)

If there is NO tariff on tea, who would you buy your tea from?

a
America
b
Britain