Suppose Canada eliminates a 15- percent 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

Quizplus · Accepted Answer

Eliminating the tariff will lower the price of foreign-made leather goods in Canada, reducing profits for domestic producers due to increased competition, and decreasing the deadweight loss as the market becomes more efficient.

Suppose Canada Eliminates a 15- Percent Tariff on Foreign- Made