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Suppose Lumber,a Homogeneous Product,is Exported from Canada at the Current

Question 52

Multiple Choice

Suppose lumber,a homogeneous product,is exported from Canada at the current world price.If Canada imposes a 25% tariff on imported lumber,we would expect to observe


A) an increase in revenues for foreign lumber producers.
B) a decrease in domestic consumption and an increase in domestic production.
C) no change in the domestic consumption or production of lumber.
D) an increase in tariff revenues for the Canadian government.
E) a decrease in tariff revenues for the Canadian government.

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