Generate this kind of tariff impact on domestic price

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Reference no: EM131310421

Country H imposes an import tarifft on good X. After the import tariff, domestic price of good X in country H increases from P to P', and P'-P

Describe two economic situations that will generate this kind of tariff impact on domestic price.

Clearly state the assumptions and use graphs to assist your argument.

1) Situation 1 (Clearly label the graph for full credits).

2) Situation 2 (Clearly label the graph for full credits).

Reference no: EM131310421

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