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If the World Price of Homogeneous Cotton Is Above the Domestic

Question 59

Multiple Choice

If the world price of homogeneous cotton is above the domestic price, an import tariff


A) will have a negative effect on domestic consumers of cotton.
B) will have a positive effect on domestic producers of cotton.
C) will have a positive effect on domestic producers and consumers of cotton.
D) may or may not effect domestic producers and consumers of cotton.

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