20.1 In the text, we argued that the burden of tariffs is shifted across markets in ways that are analogous to how tax burdens are shifted between consumers and producers.

A. Consider two countries: Country 1, in which product x would sell at p 1

, and country 2, in which it would sell at p 2

in the absence of any trade between the countries. Suppose throughout that p 2 . p 1

.