Cars

c. Domestic contractors of cars
Sellers
of cars ambition experience a decline in the cost of the new cars imported, this
decline which has occasioned an boost in the claim as cars will also outcome
into one increase in sales level, and an increase in sales level will result
into an increase in the profit levels of the automobile tradesmen.
a. New buyers of cars
b. Sellers of cars
A
tariff namely a impose imposed ashore imports, the purpose of a tax is to impede the
amount creature imported,Jordan Classic 91, heave government revenue and also protect infant
industries in a country. A diminish in the tariffs on imports in Australia will
result into a decline in the price of new cars, this decline will reduce the
tax burden of new car buyers, more people will furnish new cars and accordingly
more quantity will be demanded,Jordan Campus Chukka Sale, these can be diagrammatically diagnosed as
follows:
d. Current employers of cars (those who bought
their cars prior to 2005)
<span style="font-size: 12pt; line-height:
From
the on graph the price of new cars will decline as shown at the signal, the
quantity demanded will heave as shown by the x axis indicator, therefore the exertion
of a decline in tariffs will lead to a decline in the price level and by the
same period an increase in the quantity demanded, the new cars buyers will
experience a decline in the tax burden for imported new cars.
i. The tariff on cars imported into Australia has
decreased in 2005. Apply economic methodology to analyze the clash of this policy
on:
class="MsoPlainText" style="text-align: justify; line-height: 200%;">Question 1
When a
decline in the tax level is imposed then the price of imported cars works down,
this put tournament of these servant firms and this will result into a
decline in the demand for domestically manufactured cars. This is because the
tariff is a path in which the government will protect regional industries and at
the same time prevent unhealthy outer rivalry, therefore while a tariff
declines more substitute merchandise enter the economic, while this happens the demand
for locally manufactured goods goes down due to additional supply of cars and
increased rivalry.

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