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What is the net effect on society

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Suppose that the free-trade price of a good is $12 and a 10 percent ad valorem tariff is put in place. As a result, domestic production in a small country rises from 2000 units to 2300 units and imports fall from 600 units to 200 units. Who are the winners and losers? What is the size of their gains and losses? What is the net effect on society?

Reference no: EM131268515

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