D Question 28 Consider a small open economy country that produces cars. The world price of cars is 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.

D Question 28 Consider a small open economy country that produces cars. The world price of cars is 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.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 3CQQ

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