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Countries A and B have infinitely elastic export supplies for a particular good, with A being the low - cost producer. Country C is a
Countries A and have infinitely elastic export supplies for a particular good, with A being the lowcost producer. Country is a small importing country. Country initially has a nondiscriminatory tariff on imports from both A and In this initial equilibrium, country imports units and the price in country is
Subsequently, countries B and C agree to free trade, but country continues to levy the same original tariff on country
Given the information in the figure, what is the value of trade diversion?
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