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Use the general equilibrium model shown below to begin your analysis of how the imposition of an import tariff on wheat (W) influences: (i) allocation
Use the general equilibrium model shown below to begin your analysis of how the imposition of an import tariff on wheat (W) influences: (i) allocation of resources, (ii) consumption of W and S, (iii) the post-tariff price, and (iv) social welfare. Assume that the tariff-levying country produces wheat (W) and steel (S) and is "small" and that government does not redistribute the tariff revenue.
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