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    economic impacts of a tariff on a nation's welfare

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    This is a small country case. Using graphs, explain the economic impacts of a tariff on a nation's welfare, and show how a tariff would affect the current equilibrium price and quantity and import levels within a market that happens to be importing the good already but still has a certain amount of domestic production occurring. What are some common U.S. tariff rates on various beverages and fish products? (Choose 3 for beverage and 3 for fish.) What types of tariffs are these (specific, ad valorem, or compound)?

    3 to 4 paragraphs

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    Solution Preview

    When a small country imposes a tariff, it causes the a net loss in national welfare due to the higher prices consumers face. some These higher prices cause less of the good to be sold. Import levels fall and domestic producers obtain more revenue, and so there is a redistribution of income from consumers to producer. See the attached ...

    Solution Summary

    How tafiffs affect national welfare through changes in price, import levels, and domestic production is determined. The expert chooses three for beverages and three for fish.