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Suppose a large country imposes a tariff on a good. Which of the following statements isfalse?
a) The total consumer plus producer surplus decreases.
b) The price for consumers rises from the pre-tariff situation by the amount of the tariff.
c) If other countries do not retaliate, the country may be better off.
d) If other countries do not retaliate, the country may be worse off.
Elucidate when producers reduce price for good and services, it increase consumers surplus and everyone standard of living.
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