microbook_3e-page42 - sell more and charge higher price for...

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Tariff x When US imports good, domestic demand exceeds domestic supply x Imposition of tariff drives a wedge between world price and domestic price x After tariff imposed, domestic producers can
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Unformatted text preview: sell more and charge higher price for their product x Consumers however pay higher price and cut qty. demanded x Government receives revenue from tariff Page 42...
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