Suppose that the free-trade price of a ton of steel is €500. (Note: € is the symbol for the euro, a common currency used in 19 European countries, including Finland.) Finland, a small country, imposes a €60 per-ton specific tariff on imported steel. With the tariff, Finland produces 300,000 tons of steel and consumes 600,000 tons of steel. Who will gain and who will lose as a result Finland's €60-per-ton tariff on imported steel?
A) Both Finnish steel producers and steel consumers will be worse off with the tariff than without it.
B) Finnish steel producers will be better off; Finnish steel consumers will be worse off with the tariff than without it.
C) Finnish steel producers will be worse off; Finnish steel consumers will be better off with the tariff than without it.
D) Both Finnish steel producers and steel consumers will be better off with the tariff than without it.
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