Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 9-5 shows the impact of this tariff.
-Refer to Figure 9-5.With the tariff in place,the United States produces

Question

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With the tariff in place, the domestic price of coffee is higher than the world price. This encourages domestic production and reduces domestic consumption. As a result, the United States produces more coffee than it would without the tariff.