The more _____________ the demand or supply curves of the imported commodity in the nation imposing the tariff,the more likely it is that a large nation will experience a net welfare gain from the tariff.
A)inelastic
B)elastic
C)linear
D)nonlinear

Question

Quizplus · Accepted Answer

When demand or supply curves are more elastic, a tariff can lead to a larger change in quantity traded, which can improve the terms of trade for a large nation and potentially result in a net welfare gain.

The More _____________ the Demand or Supply Curves of the Imported