What impact would the tariff have

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Question: The argument for free trade has been a main theme of international trade economic theories for centuries. Donald Trump believes that a tariff of approx. 30-40% should be placed on products coming into America from China and Mexico.

What impact would this tariff have on

a) The demand curve for a domestic American business producing and selling a similar product in the United States

b) An American business that uses these products as inputs to their own product

Use diagrams to illustrate your answer.

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Reference no: EM132122852

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