In the large country case, when a tariff is imposed, the country:
a. sees a terms-of-trade gain.
b. is able to reduce world price of the imported good.
c. is going to experience an increase in consumer surplus.
d. sees a terms-of-trade gain and is able to reduce world price of the imported good.
Ans: d. sees a terms-of-trade gain and is able to reduce world price of the imported good.
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