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A country imposes an import fee on the crude oil it imports. Imagine that all the crude oil imports to the country are made by
A country imposes an import fee on the crude oil it imports. Imagine that all the crude oil imports to the country are made by ships owned by its nationals. The Association of Petroleum Shippers argues that the reduction in imports resulting from the import fee will drive down the price of shipping services and thereby inflict a loss on them. The Committee for Energy Independence, which favors the import fee, argues that the reduction in shipping prices will benefit consumers of shipping services. (a) Which argument is correct?
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