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If Australia Imposes a Tariff on Foreign Chocolate,how Are Australian

Question 63

Multiple Choice

If Australia imposes a tariff on foreign chocolate,how are Australian producers of chocolate affected?


A) They are harmed because foreign exporters of chocolate increase their supply in response to the higher price.
B) They are unaffected because the tariff applies to foreign producers,not to Australian producers.
C) The price at which they sell their chocolate falls.
D) The quantity of chocolate they sell decreases because Australian consumption of chocolate decreases.
E) The quantity of chocolate they produce increases.

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