Activity A

It is now time for you to have a go at working through the welfare effects of a customs union on your own. In this activity you must drag the items in the box on the right of the screen into their correct position on the diagram. Since this is your first go at doing this analysis you will be given help at getting each item in its right place.

The example in this activity is the same one that was used in the Presentation, namely the effect on the Australian motorcycle market of Australia forming a customs union with Japan .

All notation remains the same. Good luck!