Suppose Canada eliminates a 15% tariff on foreign-made leather goods.There will be a ________ in the Canadian price of leather goods,________ profits for domestic leather-goods producers,and ________ in the deadweight loss associated with the tariff.

Question

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Elimination of the tariff will lead to a fall in the Canadian price of leather goods, decreased profits for domestic leather-goods producers, and a decrease in the deadweight loss associated with the tariff.

Suppose Canada Eliminates a 15% Tariff on Foreign-Made Leather Goods