Japan imports crayons into its country; they are a price taker in this market. Suppose the world price of crayons is $5. If Japan imposes a $1 tariff on crayons, what would be the domestic price of crayons and what will happen to the quantity bought?   a The quantity bought will increase and the price will be $6. b The quantity bought will fall and the price will be $6. c The quantity bought will fall and the price will be $4. d The quantity bought will increase and the price will be $4

ENGR.ECONOMIC ANALYSIS
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Japan imports crayons into its country; they are a price taker in this market. Suppose the world price of crayons is $5. If Japan imposes a $1 tariff on crayons, what would be the domestic price of crayons and what will happen to the quantity bought?
 
a
The quantity bought will increase and the price will be $6.
b
The quantity bought will fall and the price will be $6.
c
The quantity bought will fall and the price will be $4.
d
The quantity bought will increase and the price will be $4
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