Countries X and Y, both industrialised, trade with one another. Country X places a general tariff of 20% on imports from country Y. Under which circumstances would introducing the tariff be disadvantageous for country X?
- Aif country X is seeking to protect its infant industries
- Bif country X lacks the capacity to produce import substitutes
- Cif imports from country Y have been dumped in country X
- Dif imports of manufactured goods from country Y are price elastic