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Denmark Is an Importer of Computer Chips,taking the World Price

Question 158

Multiple Choice

Denmark is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Denmark imposes a $5 tariff on chips.As a result,


A) Danish consumers of chips and Danish producers of chips both gain.
B) Danish consumers of chips gain and Danish producers of chips lose.
C) Danish consumers of chips lose and Danish producers of chips gain.
D) Danish consumers of chips and Danish producers of chips both lose.

Correct Answer:

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