For a large nation,the levying of an import tariff on steel
A) necessarily causes the nation's welfare to decline
B) causes price of steel on the world market to decline
C) causes the price of steel for domestic consumers to rise by the full amount of the tariff
D) necessarily causes the nation's welfare to increase

Question

Quizplus · Accepted Answer

For a large nation, imposing an import tariff can lower the world market price of steel because the nation has significant influence over the market due to its size, affecting global supply and demand dynamics.

For a Large Nation,the Levying of an Import Tariff on Steel