Question

Indonesians bemoan Hollywood blockbuster blackout Four months ago Indonesia imposed an import tariff on Hollywood movies. The tariff was meant to protect local film makers. The major Hollywood studios responded by withdrawing their films from Indonesia. Source: The Jakarta Post, July 6, 2011 Explain how this tariff influences the price of seeing a movie in Indonesia, the quantity of movies produced in Indonesia, and Indonesia's gains from trade with the United States. Who, in Indonesia, gains from the tariff and who loses? Indonesian gains The increase in the tariff the price that Indonesian consumers pay to see a movie, and the quantity of movies produced in Indonesia, The increase in the tariff from trade O A. does not change OB. increases O C. decreases O A. raises, decreases O B. lowers; increases OC. raises, increases OD. raises, does not change O E lowers: decreases In Indonesia with the increase in the tariff, consumer surplus , and producer surplus O A. does not change; does not change OB. increases and consumers gain; increases and producers also gain Oc decreases and consumers lose; increases and producers gain OD. decreases and consumers lose; decreases and producers lose O E increases and consumers gain, decreases and producers lose

Answer 1

# the incorare in the tariff raises the price that Indonesian consumes pay and deconans maries the granty of (optron A) Raises pas price as now conswarts pary ht flim studias por tax to Indonesian gawinment and Hollywood stadios pass on the tax to consumers. Nowe same studios decnean the flims to Indonesia so, quantity decreass # the increan in tariff decreases the gains from trade. cophron e # Consumer surplus. decreams and consumers lose and produced surplus deemoves increass and produ gain. ophone