Suppose a domestic market in a country is perfectly competitive. The domestic market is small and cannot influence the international price. Assume the country exports to the international market. Which of the following is correct about the effect of a tax per unit purchased in the country? a. The domestic producers supply more to the domestic market b. Increases export quantity c. Increases total quantity supplied d. Decreases total quantity supplied e.None of the above

Suppose a domestic market in a country is perfectly competitive. The domestic market is small and cannot influence the international price. Assume the country exports to the international market. Which of the following is correct about the effect of a tax per unit purchased in the country? a. The domestic producers supply more to the domestic market b. Increases export quantity c. Increases total quantity supplied d. Decreases total quantity supplied e.None of the above

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 6PA

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