Question

# The world price of a mattress is \$422 and government imposes an ad valorem tariff of...

The world price of a mattress is \$422 and government imposes an ad valorem tariff of 18%.

The specific tariff equivalent to this ad valorem tariff is:

Amount of ad-valorem tariff = \$422 x 18% = \$75.96

Specific tariff equivalent of ad-valorem tariff = \$75.96 per unit of mattress

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