Consider a small open economy country that produces cars. The world price of cars less than the country's autarky price of cars. A tariff on imports of cars will decrease the consumer surplus of domestic car consumers by more than it will increase the producer surplus of domestic car producers. True/False. Remember to include your explanation.

Consider a small open economy country that produces cars. The world price of cars less than the country's autarky price of cars. A tariff on imports of cars will decrease the consumer surplus of domestic car consumers by more than it will increase the producer surplus of domestic car producers. True/False. Remember to include your explanation.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter28: International Trade

Section: Chapter Questions

Problem 10P

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