a. If the foreign export supply is perfectly elastic, what is the optimal tariff Home should apply

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a. If the foreign export supply is perfectly elastic, what is the optimal tariff Home should apply to increase welfare? Explain.

b. If the foreign export supply is less than perfectly elastic, what is the formula for the optimal tariff Home should apply to increase welfare?

c. What happens to Home welfare if it applies a tariff higher than the optimal tariff?

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International Trade

ISBN: 9781429278447

3rd Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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Question Posted: Nov 11, 2024 06:00 AM

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a. If the foreign export supply is perfectly elastic, what is the optimal tariff Home should apply

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International Trade

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