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ludmilkaskok [199]
3 years ago
11

Suppose that Ireland has placed a tariff of 12% on its exports and a tariff of 21% on its imports. If Ireland has tariff revenue

worth (equivalent US dollars) $9,148,200 and a balance of trade of $7,100,000, what are its exports and imports worth?
a.
$950,416 in imports, $8,050,416 in exports
b.
$3,145,984 in imports, $10,245,984 in exports
c.
$1,921,122 in imports, $9,021,122 in exports
d.
$25,140,000 in imports, $32,240,000 in exports
Mathematics
1 answer:
Rasek [7]3 years ago
6 0
<h2><u>Answer</u>: </h2>

d.   $25,140,000 in imports, $32,240,000 in exports

<h2><u>Step-by-step explanation:</u></h2>

Let x be the export worth and y be the import worth of Ireland.

Since, Balance trade = Export worth - Import worth

Then according to the question we have following equations :-

0.12x+0.21y=9,148,200...............................(1) \\\\x-y=7,100,000.....................................(2)

Multiplying equation (2) by 0.21, we get

0.21x-0.21y=0.21\times7,100,000 \\\\\Rightarrow0.21x-0.21y=1,491,000........................(3)

Adding (1) and (3), we get

0.21x+0.12x=9,148,200+1,491,000\\\\\Rightarrow0.33x=10639200\\\\\Rightarrow\ x=32,240,000

Substituting value of x in (2), we get

32,240,000-y=7,100,000\\\\\Rightarrow y=32,240,000-7,100,000\\\\\Rightarrow y=25,140,000

Hence, Ireland's import worth is 25,140,000 and export worth =  $32,240,000

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