Suppose that Lebanon has placed tariffs on its imports and exports. The import tariff is 13%, and the export tariff is 8%. If Lebanon has a balance of trade of (equivalent US dollars) $5,510,000 and received tariff revenue of $4,019,200, what are its imports and exports worth? a. $30,916,923 in imports, $50,240,000 in exports b. $17,040,000 in imports, $22,550,000 in exports c. $6,226,300 in imports, $5,950,800 in exports d. $4,793,700 in imports, $5,069,200 in exports.

The worth of imports and exports in reference to the balance of trades is $17,040,000 for imports and $22,550,000 for exports.

Given,

[tex]I[/tex] =Import tariff 13%

[tex]E[/tex]=Export tariff 8%

[tex]TB[/tex] =Trade balance of $5,510,000

[tex]TR[/tex] =Tariff revenue received of $4,019,200

First, two equations will be formed:

1. Trade Balance:

[tex]TB=E-I[/tex]

2. Tariff revenue:

[tex]TR=E+I[/tex]

The two equations with the given values are as follows:

1. [tex]E-I=\$5,510,000[/tex]

2. [tex]0.08E+0.13I=\$4,019,200[/tex]

Using both the equations the value [tex]E, I[/tex] are computed as follows:

Equation 1. can be written as:

[tex]E=\$5,510,000+I[/tex]

Putting the changed Equation 1. in equation 2.

[tex]\begin{aligned}0.08(\$5,510,000+I)+0.13I&=\$4,019,200\\\$440,800+0.08I+0.13I&=\$4,019,200\\0.21I&=\$3,578,400\\I&=\$17,040,000\end{aligned}[/tex]

Now, putting the value of [tex]I[/tex] in equation 1:

[tex]\begin{aligned}E-\$17,040,000&=\$5,510,000\\E&=\$5,510,000+\$17,040,000\\E&=\$22,550,000\end{aligned}[/tex]

Therefore, option b. $17,040,000 in imports, $22,550,000 in exports is correct.

Learn more about imports and exports, refer to the link:

https://brainly.com/question/1060159

Answer:

(B) $17,040,000 in imports, $22,550,000 in exports

Explanation:

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