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Consider the following supply and demand diagram shown for a small domestic country. Note that at the world free-trade price of P* illustrated in the diagram, there are imports of Q1 - Q0. If a government wanted more tariff revenue, given the same tariff, t, would it desire elastic or inelastic demand of the imported good? Explain. Be sure to illustrate your explanation with an appropriate diagram.
Experimental Groups
Groups in an experiment that receive the treatment or the variable being tested, as opposed to control groups which do not.
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