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Suppose a country starts off with free trade and is importing a particular good. For political reasons, the country decides to STOP importing the good.
Suppose a country starts off with free trade and is importing a particular good. For political reasons, the country decides to STOP importing the good. When that happens, ... (NOTE: Social welfare is the fancy way of saying how well off society as a whole is. So when we say society as a whole is better off, that means social welfare increases. When we say society as a whole is worse off, that means social welfare decreases.) Question 1 options: producers are better off and social welfare increases in the market for that good. producers are better off and social welfare decreases in the market for that good. producers are worse off and social welfare increases in the market for that good. producers are worse off and social welfare decreases in the market for that good
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