With free international trade the world price of a t-shirt


With free international trade, the world price of a T-shirt is $5 and the United States imports 40 million T-shirts a year.

Imagine that the United States imposes a tariff of $2 on each T-shirt imported. The price of T-shirts in the U.S. would rise by how much?

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Business Economics: With free international trade the world price of a t-shirt
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