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The following equations describe the demand of and supply for shoes. Q = -5P+1600 Q=10P - 400 Assume that the world price of shoes is
The following equations describe the demand of and supply for shoes.
Q = -5P+1600
Q=10P - 400
Assume that the world price of shoes is 60TL but that the government of this country imposes 10TL for each pair of shoes imported to the country . As a result of the tariff, the domestic production of shoes:
a.decreases by 100pairs of shoes.
b.increases by 950pairs of shoes.
c.does not change
d.increases by 50 pairs of shoes.
e.increases by 100 pairs of shoes.
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