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Hello, could someone please help me with this multiple choice question? Question 26 (1 point) Referring to the above figure (Ejgure 3), which is a
Hello, could someone please help me with this multiple choice question?
Question 26 (1 point) Referring to the above figure (Ejgure 3), which is a partial equilibrium model showing - among other things - the impact of a tariff on some good that is produced domestically and imported, which of the following accurately describes what is going The imposition by a large country of a quota on some imported good, which o raises the domestic price, reduces the world price, encourages more domestic production, less domestic consumption, and raises revenue for the government. The imposition by a small country of a tariff on some imported product, which o drives up the domestic price, drives down the world price, raising domestic production of the good - while eroding domestic demand and consumer surplus. The imposition by a small country of a quota on some imported good, which o raises the domestic price, reduces the world price, encourages more domestic production, less domestic consumption, and raises revenue for the government. The imposition by a large country of a tariff on some imported product, which o drives up the domestic price, drives down the world price, reduces domestic demand, raises domestic supply and raises revenue for the government. The imposition by any sized country of a tariff on some imported good, which o drives up the domestic price, drives down the foreign price, boosts domestic production, reduces domestic consumption, and raises revenue for the government.
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