In the model of question 44, suppose that instead of an import tariff, the government had imposed

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In the model of question 44, suppose that instead of an import tariff, the government had imposed a 50% tax on exports of tea. Repeat the analysis. How do the outcomes compare with the case of the tariff?

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International Trade

ISBN: 978-0470408797

1st edition

Authors: John McLaren

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Question Posted: Apr 21, 2016 05:12 AM

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In the model of question 44, suppose that instead of an import tariff, the government had imposed

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The 50 tax on exports of tea will reduce the price in this economy from the initial 1 to 050 When ex...View the full answer

International Trade

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