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Competitive firms in China sell their output only in Europe and the United States (which do not produce the good themselves). The industry's supply curve
Competitive firms in China sell their output only in Europe and the United States (which do not produce the good themselves). The industry's supply curve is upward sloping. America puts a tariff of t per unit on the good, but Europe does not. What is the effect of the tariff on the total quantity of the good sold, the quantity sold in America, the quantity sold in Europe, and the equilibrium price(s)?
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