Asked by
Laura Mosquera
on Nov 17, 2024
Verified
When a government imposes a tariff on a product, the domestic price will equal the world price.
Domestic Price
The price of goods or services within a country's borders, distinct from international or foreign prices.
World Price
The global market price of a good or service, influenced by worldwide demand and supply.
Tariff
A tax imposed by a government on goods and services imported from other countries, often used to protect domestic industries from foreign competition.
- Analyze the results of implementing tariffs and quotas on prices in the domestic sphere, the extra gains to consumers and producers, and the comprehensive welfare outcome.
Verified Answer
KN
Learning Objectives
- Analyze the results of implementing tariffs and quotas on prices in the domestic sphere, the extra gains to consumers and producers, and the comprehensive welfare outcome.
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