MYTUTOR SUBJECT ANSWERS

411 views

What are tariffs?

Tariffs are taxes on imported products. Governments impose them in order to discourage consumers from purchasing imported products and/or to raise revenue. 

Tariffs can be ad-valorem (% taxes) or specific (fixed sum taxes)

Example: The EU's common external tariff, which is a single external tariff on imports coming in the EU from countries outside the trade union, does raise revenue but its main aim is to encourage member states to trade with each other. 

However, the success of tariffs depends on:
1. The magnitude of the tariff. The higher the tariff imposed is, the greater the decrease in demand for imports and the higher the revenues received. 
2. The price elasticity of demand/ price elasticity of supply. eg. If demand for imports is inelastic, the imposition of tariff will not significantly decrease consumption of imports. 

Angeliki H. A Level Economics tutor, GCSE Economics tutor

7 months ago

Answered by Angeliki, an A Level Economics tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

64 SUBJECT SPECIALISTS

£20 /hr

Rebecca M.

Degree: BSc Economics (Bachelors) - Leeds University

Subjects offered:Economics, English Literature+ 2 more

Economics
English Literature
-Personal Statements-

“Hi! I'm Rebecca. I'm a first year Economics Student at the University of Leeds. I have 3 years of previous tutoring experience and I'm excited to share my passion for Economics and English Literature with you. Whether you need assista...”

£22 /hr

Anahita G.

Degree: Maths and Economics (Bachelors) - York University

Subjects offered:Economics, Science+ 3 more

Economics
Science
Maths
Chemistry
.TSA. Oxford.

“I am a maths and economics student at the University of York. I have always loved logical and analytical subjects, for example Maths and the Sciences. I also particularly enjoy economics as there are countless ways to analyse and conc...”

£30 /hr

James T.

Degree: Economics & Management (Bachelors) - Bristol University

Subjects offered:Economics, Maths

Economics
Maths

“I am currently studying Economics & Management at the University of Bristol, and love working with students of all ages, specialising in Maths and Economics at both A-Level and GCSE. I have been teaching drums and coaching tennis for ...”

About the author

Angeliki H.

Currently unavailable: for new students

Degree: Economics (Bachelors) - Bristol University

Subjects offered:Economics, Maths

Economics
Maths

“Hi, I am Angeliki! I am an economics student at the University of Bristol. Economics have always been my passion. Through my tutorials I will be able to pass my love and excitement about the subject to my students making it more inter...”

MyTutor guarantee

You may also like...

Posts by Angeliki

What are tariffs?

What is market failure?

Other A Level Economics questions

Explain the factors influencing short run and long run aggregate supply

Is price capping an effective way to deal with monopolistic power?

What characteristics might a perfectly competitive market have? Choose 3 (6 marks)

What factors cause the aggregate demand curve to shift?

View A Level Economics tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok