When a small country imposes a tariff, the domestic price of the good increases. This causes a "production" and a "consumption" effect. Explain carefully these two effects, and discuss whether they increase or decrease the country's well-being.

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The Answer of When a small country imposes a tariff, the domestic price of the good increases. This causes a "production" and a "consumption" effect. Explain carefully these two effects, and discuss whether they increase or decrease the country's well-being.

When a Small Country Imposes a Tariff, the Domestic Price