Economics 9708 · AS & A Level · 6.5

6.5 — practice question

At what stage is introducing a tariff on a good most likely to cut a trade deficit?

  • Awhen the country has a potential comparative advantage in producing that good
  • Bwhen the country is a member of an economic union
  • Cwhen the elasticity of supply of the good domestically is zero
  • Dwhen the price elasticity of demand for the good is zero

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