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Refer to the figure in the PDF below of a small country that has imposed a tariff. The free trade world price ratio facing the country is PB/PA* and the domestic price ratio facing the country after the imposition of the tariff is (PB/PA*)t. This country has imposed a tariff on the (import/export) good _____.

/in /by

Refer to the figure in the PDF below of a small country that has imposed a tariff. The free trade world price

ratio facing the country is PB/PA* and the domestic price ratio facing the country after the imposition of the tariff is (PB/PA*)t.

This country has imposed a tariff on the (import/export) good _____.

 
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