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Senator Blowhard Represents a State in Which Many Textile Firms

Question 305

Multiple Choice

Senator Blowhard represents a state in which many textile firms are located.He wants to impose tariffs on all imported textiles.Which of the following is the least likely consequence of such tariffs?


A) Domestic textile buyers will lose consumer surplus,have less variety,and will pay higher prices.
B) Domestic textile sellers will gain producer surplus.
C) Domestic textile sellers will have a higher rate of technological advance.
D) Domestic textile sellers will have more market power.

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