If a tariff is imposed in a country that is too small to have global market power,the domestic consumer will face a price,and the price paid to foreign producers will .

Question

Quizplus · Accepted Answer

When a small country imposes a tariff, the domestic price increases by the amount of the tariff, but the price paid to foreign producers does not change because the country is too small to influence world prices.

If a Tariff Is Imposed in a Country That Is