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If a Country Is So Large That Its Demand for Certain

Question 82

Multiple Choice

If a country is so large that its demand for certain imports affects the world price:


A) it should increase its exports to ease world supply conditions.
B) it should subsidize domestic production of these products.
C) it should impose a tariff to restrict imports and the upward pressure on world price.
D) it should eliminate any tariff on these products to reduce price to domestic buyers.

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