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In the Following Import Graph, If Horizontal Supply Line Sm

Question 32

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In the following import graph, if horizontal supply line Sm shifts to horizontal line S'm because of the imposition of a tariff,
In the following import graph, if horizontal supply line S<sub>m</sub> shifts to horizontal line S'<sub>m</sub> because of the imposition of a tariff,   A)  the situation must be one of a  large  importing country. B)  the tariff must be a specific tariff. C)  the tariff must be an ad valorem tariff. D)  the tariff can be either a specific or an ad valorem tariff.


A) the situation must be one of a "large" importing country.
B) the tariff must be a specific tariff.
C) the tariff must be an ad valorem tariff.
D) the tariff can be either a specific or an ad valorem tariff.

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