Question
2. Suppose a small country like Gambia imposes a tariff on its imports of Cloth from the USA. A. What will happen to domestic price
2. Suppose a small country like Gambia imposes a tariff on its imports of Cloth from the USA.
A. What will happen to domestic price of cloth in the Gambia? Will it increase or decrease?
Explain why? (15 points)
B. Who will be happy with the imposition of the tariff on imports domestic consumers or domestic producers in Gambia? Explain why? (15 points)
C. Why will the government of Gambia be happy with the imposition of the tariff?
Explain, why? (15 points)
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
