Question 49 Suppose a large importing country has the te following supply and demand curve: S-20P and D-48-4P, with a free trade and the government revenue. world price of $1. Suppose that a tariff is imposed in the large open economy such that the price the exporter gets to keep is now 0.5 and the price the large open economy gets to pay is 1.5. The tariff imposed is. generated by the LOE is with terms of trade effect of

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