Corporations produce most of the output in the United States

In the wake of worsening relations with China, some Americans called for an increase in tariffs on Chinese products coming into America. If higher tariffs are imposed on clothing produced in China, the price of clothing in America would

A) decrease. B) increase. C) not change. D) first increase then decrease. E) first decrease then increase.

Happy Trails, a bicycle rental company, is considering purchasing three additional bicycles. Each bicycle would cost them $249.66 . At the end of the first year the increase to their revenues would be $140 per bicycle. At the end of the second year the increase to their revenues again would be $140 per bicycle. Thereafter, there are no increases to their revenues. At which of the following

interest rates is the sum of the present values of the additional revenues closest to the price of a bicycle? a. 5 percent b. 6 percent c. 7 percent d. 8 percent