Rene Fisher

History

13 January, 17:58

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 Britain cost?

a

$3.50

b

$5.25

c

$4.00