In the Following Import Graph, If Horizontal Supply Line S_m

question 32

Multiple Choice

In the following import graph, if horizontal supply line S_m shifts to horizontal line S'_m because of the imposition of a tariff,

• A) the situation must be one of a "large" importing country.
• B) the tariff must be a specific tariff.
• C) the tariff must be an ad valorem tariff.
• D) the tariff can be either a specific or an ad valorem tariff.

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