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Price SUS Py + T 2 3 PW OUS 0 Quantity The world price is Py. If a tariff is imposed the price rises to

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Price SUS Py + T 2 3 PW OUS 0 Quantity The world price is Py. If a tariff is imposed the price rises to Py + T. Because of the tariff. consumers' surplus is reduced by an amount equal to the area of O1.2+3. 03.4 01.2 O2.3 O1.2+3.4

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