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D'nalsi, an island nation in the Atlantic, relies on tariff revenue to fund government expenditure. It levies tariffs on luxury goods, including imported handbags. The
D'nalsi, an island nation in the Atlantic, relies on tariff revenue to fund government expenditure. It levies tariffs on luxury goods, including imported handbags. The demand for imports of luxury handbags in D'nalsi is: Qm - 15,000 - 15P Currently, the world price of handbags is $500 and D'nalsi imposes a 60% tariff. The country is evaluating options to change the tariff, and one political party is proposing to increase it to 70% while another is proposing to decrease it to 50%. Based solely on a goal of raising the highest amount of revenue, would you recommend raising the tariff to 70%, lowering it to 50%, or keeping it at 60%? Briefly explain your
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