Prove that the more inelastic demand and supply conditions are in a foreign country, the greater the

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Prove that the more inelastic demand and supply conditions are in a foreign country, the greater the ability of a country that is large in world markets to impose an optimal tariff. Use this result to explain why the OPEC price increases of the 1970s had such devastating effects on the economies of the West.

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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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