When a government imposes a tariff on a product, the domestic price will equal the world price.

Name: When a government imposes a tariff on a product, the domestic price will equal the world price.
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When a government imposes a tariff on an imported product, the domestic price of that product typically increases above the world price due to the added cost of the tariff. This makes imported goods more expensive compared to domestically produced goods.

When a Government Imposes a Tariff on a Product, the Domestic