Insufficient Data to Solve the Ireland Tariff Trade Problem

The problem statement provides tariff rates (12 % on exports, 21 % on imports) and two aggregate figures (revenue $9,148,200; trade balance $7,100,000) but omits the essential variables needed to solve for w:

  • Total export value (subject to 12 % tariff).
  • Total import value (subject to 21 % tariff).
  • Definition of w (revenue? welfare loss? deadweight? a specific quantity?).

What Would Be Needed

A standard partial-equilibrium model requires:

  1. Export supply & import demand elasticities.
  2. World prices.
  3. Domestic equilibrium without tariffs.
  4. Tariff revenue = 0.12 × Exports + 0.21 × Imports = 9,148,200.
  5. Trade balance = Exports − Imports = 7,100,000.

Two equations, two unknowns (Exports, Imports) — solvable if those are the only unknowns. But without knowing what w represents, the solution cannot be completed.

Please clarify the definition of w and provide any missing behavioral parameters.

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