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Denmark Is an Importer of Computer Chips and Adds a $5

question 21

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Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip.Suppose Denmark removes the tariff.Which of the following outcomes is not possible?


Definitions:

Strike Prices

The specified price at which an option contract can be exercised, determining the buying or selling price of the underlying asset.

Stock Splits

A corporate action that increases the number of a company's shares by dividing each share, which typically reduces the share price.

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the firm's earnings.

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