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.

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Eliminating a tariff on foreign-made leather goods would cause the price of leather goods in Canada to fall, as imported goods become cheaper. This would result in decreased profits for domestic leather-goods producers, as they face more competition from the cheaper imports. Finally, removing the tariff would also result in a decrease in deadweight loss, as the market becomes more efficient with less distortion caused by the tariff.

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