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Denmark is an importer of computer chips and is also a price-taker in the chip market. The world price of these computer chips is $12.

Denmark is an importer of computer chips and is also a price-taker in the chip market. The world price of these computer chips is $12. If Denmark imposes a $4 Tariff on chips, the result in Denmark would be that Consumers and producers will both gain. Consumers and producers will both lose. Consumers will gain and producers will lose. Consumers will lose and producers will gain

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