By reducing available supplies of a product, an export embargo leads to falling prices in the target nation and increasing target-nation consumer surplus.

Name: By reducing available supplies of a product, an export embargo leads to falling prices in the target nation and increasing target-nation consumer surplus.
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Question

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An export embargo typically leads to an increase in prices in the target nation due to reduced supply, which can lead to a decrease in consumer surplus.

By Reducing Available Supplies of a Product, an Export Embargo