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If a Small Country Imposes a Tariff on Imported Motorcycles

Question 47

Multiple Choice

If a small country imposes a tariff on imported motorcycles:


A) the surplus of the domestic producers of motorcycles will decline, but the surplus of the domestic consumers will increase.
B) the surplus of both the domestic producers and consumers of motorcycles will decline.
C) the surplus of both the domestic producers and consumers of motorcycles will increase.
D) the surplus of the domestic producers of motorcycles will increase, but the surplus of the domestic consumers will decline.

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