If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?

A. The price of autos within the nation will rise by 10 percent
B. The price of autos within the nation will rise by less than 10 percent
C. The price of autos within the nation will rise by more than 10 percent
D. The price of autos will not rise because of internal competition

Correct Answer: The price of autos within the nation will rise by 10 percent ✔

Last Updated: June 18, 2019