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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:

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Answer #1

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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