Suppose the government is considering the introduction of, Finance Basics

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Suppose the government is considering the introduction of

Question: Suppose the government is considering the introduction of an import tariff on one of two products - one product exhibits a high own-price elasticity of demand and the other has a low elasticity. In a graph, compare the effects of a tariff on the excess burden for the two goods. Label the axes, curves, and initial market equilibrium. On which type of good do you recommend that the tariff be imposed? Explain why.

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