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Suppose the World Price of Widgets Is $5 Each

Question 10

Multiple Choice

Suppose the world price of widgets is $5 each. If a widget-importing country imposed a $2 per widget tariff, what price would that country's consumers pay for widgets?


A) $3
B) $7
C) $5
D) $10
E) A price that is greater than $5 and less than $7.

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