Suppose the European Parliament is considering legislation that will decrease tariffs on agricultural products imported from the United States. The benefit of the tariff reduction is estimated at €5 per person. a. Agribo is a hypothetical special interest group that represents the four largest agricultural companies in the European Union. Agribo opposes the legislation and argues that agricultural firms in the European Union stand to lose €500 million if the tariff reduction goes through. If the population of the European Union is 500 million people, what is the estimated benefit to the population of the proposed legislation?

Respuesta :

Answer:

€2,500 million

Explanation:

Data provided as per the requirement of estimated benefit to the population is here below:-

Benefit of the tariff reduction = €5

Size of population = €500 million

The computation of estimated benefit to the population is shown below:-

Estimated benefit to the population = Benefit from tariff reduction × Size of population

= €5 × €500 million

= €2,500 million

Therefore for computing the estimated benefit to the population we simply applied the above formula.

The estimated benefit to the population of the proposed legislation is €2500 million

From the information provided by this question:

The benefit of this reduction per person = €5

Amount that would be lost if the tariff goes through = €500 million

The size of this population = 500 million individuals

The estimated benefit

= benefit of the reduction per person x the population

= 5 x 500 million

= €2500 million

In conclusion, the estimated benefit to the population of the proposed legislation is €2500 million

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