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Part 1. The costs and benefits of a tariff or other trade policy may be measured using the concepts of consumer surplus and producer surplus.
Part 1. The costs and benefits of a tariff or other trade policy may be measured using the concepts of consumer surplus and producer surplus. Apply these advanced concepts and show that how the domestic producers of a good gain affects because a tariff raises the price they receive; the domestic consumers lose, for the same reason. (10 Marks) (C3)
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