What price increase-suggest if tariff legislation is passed


You managed a company that competes in an industry that is comprised of five equal sized. A recent industry report indicated that the market is fairly saturated , in that a 10 percent industrywide price increase would lead to a 22 percent declined in unit sold by all firms in the industry. Currently, Congress is considering legislation that would impose a tariff on a key input used by the industry. Based on the information what price increase world you recommend if the tariff legislation is passed by Congress?

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Microeconomics: What price increase-suggest if tariff legislation is passed
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