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Tariffs on Imports
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Tariffs on Imports
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9. International Trade / Tariffs on Imports / Problem 3
Problem 3
After a tariff is imposed, what happens to the gap between domestic quantity supplied and quantity demanded?
A
The gap remains unchanged.
B
The gap widens as supply decreases and demand increases.
C
The gap narrows as supply increases and demand decreases.
D
The gap widens as both supply and demand decrease.
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