1. Draw a domestic supply-and-demand diagram for a product in which the United States does not have...
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1. Draw a domestic supply-and-demand diagram for a product in which the United States does not have a comparative advantage. What impact do foreign imports have on domestic price and quantity? On your diagram show a protective tariff that eliminates approximately one-half of the assumed imports. What are the price-quantity effects of this tariff on:
(a) domestic consumers
(b) domestic producers
(c) foreign exporters?
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