In the large-country case, when a tariff is imposed, the country: sees a terms-o

ID: 2776805 • Letter: I

Question

In the large-country case, when a tariff is imposed, the country:

sees a terms-of-trade gain, but has no control over world price.

is able to reduce world price of the imported good.

is going to experience an increase in consumer surplus.

sees a terms-of-trade gain and is able to reduce world price of the imported good.

sees a terms-of-trade gain, but has no control over world price.

is able to reduce world price of the imported good.

is going to experience an increase in consumer surplus.

sees a terms-of-trade gain and is able to reduce world price of the imported good.

A. sees a terms-of-trade gain, but has no control over world price

When tariff is imposed, it implies that the import duty has been imposed on the imported goods therefore increasing the worlds price.

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