A particular good in the Barbados market could be supplied by domestic producers, or producers in Trinidad & Tobago, or producers in the USA, at the following prices in US dollars:
Originally Barbados had a 20 % ad valorem duty on imports from Trinidad & Tobago and the USA.
Barbados then formed a customs union with Trinidad & Tobago, with a common external tariff, also of 20 %.
From which countries would Barbados import the good, before the formation of the customs union and after the formation of the customs union?
1 )
A
B
3 )
C
4 )
D
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