Not a Zero-Sum Game - Ludwig von Mises Institute

Now suppose that the government of COUNTRY A
imposes a 10 percent import tariff on TVs
Table Ill The effect assuming no intermediation
Country A
The price of imported TVs goes up from $26.67 to $29.33 each.
($26.67 + 10% = $25.33)
The purchasing power parity tends to settle at $1 : Y41.
The price relationship between a TV and a radio changes to 1.47 : 1.
The cost of a basket of 10 radios and 10 TVs would initially rise:
from under free trade
10 radios x $26.67 = $266.70
10 TVs x $20.00 = $200.00
TOTAL $466.70
to include the 10 percent tariff
10 radios x $29.33 = $293.30
10 TVs x $20.00 = $200.00
TOTAL $493.30
Table IV The effect with intermediation