SCENARIO: FINNISH STEEL Suppose That the Free­trade Price of a Ton of Steel

SCENARIO: FINNISH STEEL
Suppose that the free­trade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 per­ton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 8­5
(Scenario: Finnish Steel) What is likely to happen to Finnish production of
Steel and the price of steel sold in Finland after the €60­per­ton tariff is
Imposed?

A) Finnish steel production will fall, and the Finnish price of steel will fall.
B) Finnish steel production will rise, and the Finnish price of steel will fall.
C) Finnish steel production will fall, and the Finnish price of steel will rise.
D) Finnish steel production will rise, and the Finnish price of steel will rise.