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

question 21

Multiple Choice

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?

• A)More Danish-produced chips are sold in Denmark.
• B)More foreign-produced chips are sold in Denmark.
• C)Danish consumers of chips become better off.
• D)Total surplus in the Danish chip market increases.

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