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If the United States Increases Tariffs on Imports of Lumber

Question 40

Essay

If the United States increases tariffs on imports of lumber from Canada (which causes the price of lumber to increase in the United States), the equilibrium price of new homes in the United States will and the equilibrium quantity of new homes in the United States will
________.
A.increase; increase
B.increase; decrease
C.decrease; increase
D.decrease; decrease

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