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How Does a Tariff on an Imported Good Affect Domestic

Question 79

Multiple Choice

How does a tariff on an imported good affect domestic producers?  


A)  Domestic producers are better off because they sell more goods at the same price. 
B)  Domestic producers are better off because they sell more goods at a higher price. 
C)  Domestic producers are better off because they sell the same quantity of goods at a higher price. 
D)  Domestic producers are neither better off nor worse off because imports do NOT change domestic production.

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