Starting with the free trade offer curves of Nation 1 and Nation 2 in Figure 8.6 and

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Starting with the free trade offer curves of Nation 1 and Nation 2 in Figure 8.6 and building on your figure in Problem 1, draw a figure analogous to Figure 8.6 showing the general equilibrium effects of the 100 percent ad valorem import tariff on commodity Y imposed by Nation 1, now assumed to be a large nation.
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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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