If Canada initially has no tariffs and it then imposes a 10 percent tariff on a specific commodity, we would expect to observe

Question

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When Canada imposes a 10 percent tariff on a commodity, it increases the cost of importing that commodity, leading to higher prices for consumers. This results in increased tariff revenue for the Canadian government as they collect the tariff on each unit of the commodity imported.

If Canada Initially Has No Tariffs and It Then Imposes