Answer to Question #219640 in Microeconomics for Ankit

Question

Suppose that BJP imposes a tariff on imported autos to protect Indian auto industry from foreign competition. Assuming that India is a price taker in the world auto market , shown on a diagram : change in quantity of imports, loss of Indian consumers, gain to indian manufacturers, government revenue, dead weight loss associated with tariff.

Answer 1

YES I agree , the policy is good since it will widen production market in the Indian industry hence more job opportunities.