SCENARIO: FINNISH STEEL Suppose That the Free­trade Price of a Ton of Steel

Multiple Choice

SCENARIO: FINNISH STEEL
Suppose that the free­trade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 per­ton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 8­5
(Scenario: Finnish Steel) Who will gain and who will lose as a result
Finland's €60­per­ton tariff on imported steel?

A) Both Finnish steel producers and steel consumers will be worse off with the tariff than without it.
B) Finnish steel producers will be better off, and Finnish steel consumers will be worse off with the tariff than without it.
C) Finnish steel producers will be worse off, and Finnish steel consumers will be better off with the tariff than without it.
D) Both Finnish steel producers and steel consumers will be better off with the tariff than without it.