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The Diagram Below Shows the Domestic Demand and Supply Curves

question 90

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The diagram below shows the domestic demand and supply curves for denim jeans in Canada.The prevailing world price is PW.Assume that all jeans are identical. The diagram below shows the domestic demand and supply curves for denim jeans in Canada.The prevailing world price is P<sub>W</sub>.Assume that all jeans are identical.   FIGURE 33-2 Refer to Figure 33-2.Suppose Canada has free trade in jeans.If Canada initially has no tariff on jeans but then imposes a tariff of $t per pair,Canada's imports will A) increase from (Q<sub>4</sub> - Q<sub>2</sub>) to (Q<sub>5</sub> - Q<sub>1</sub>) . B) increase from (Q<sub>4</sub> - Q<sub>2</sub>) to (Q<sub>5</sub> - Q<sub>3</sub>) . C) decrease from (Q<sub>5</sub> - Q<sub>1</sub>) to (Q<sub>4</sub> - Q<sub>2</sub>) . D) decrease from (Q<sub>5</sub> - Q<sub>3</sub>) to (Q<sub>4</sub> - Q<sub>2</sub>) . E) decrease from(Q<sub>5</sub> - Q<sub>3</sub>) to (Q<sub>3</sub> - Q<sub>1</sub>) . FIGURE 33-2 Refer to Figure 33-2.Suppose Canada has free trade in jeans.If Canada initially has no tariff on jeans but then imposes a tariff of $t per pair,Canada's imports will


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