Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, the long-run effect is most likely to be:
A. an increase in American imports, and a decrease in American exports.
B. an decrease in American imports, and an increase in American exports.
C. an increase in both American imports and exports.
D. a decrease in both American imports and exports.
Ans: D. a decrease in both American imports and exports.
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Refer to the graph shown. If the price were at the market equilibrium price, the total surplus would be equal to:
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