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Suppose government imposes a large import tariff on aluminum. Using a general equilibrium analysis, one can conclude that A . both aluminum and steel prices
Suppose government imposes a large import tariff on aluminum. Using a general equilibrium analysis, one can conclude that
A both aluminum and steel prices will fall, and so will the price of products that use either of these two inputs.
B aluminum prices will rise but steel prices will fall.
C aluminum prices will fall but steel prices will remain constant.
D both aluminum and steel prices will rise, and so will the price of products that use either of these two inputs.
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