1.4.3 Refer to the previous problem. Assume the market is opened to trade and Indonesia still enters...

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1.4.3 Refer to the previous problem. Assume the market is opened to trade and Indonesia still enters the market by pricing coal at $40 per ton. But as a response to complaints from domestic coal producers, instead of imposing a $10 per ton tariff, the government imposes an import quota of 90 million tons on Indonesian coal.

How will the results of the quota differ from the results of the tariff?

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Principles Of Economics

ISBN: 9780802845610

12 Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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