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The current world price of corn is $6.00 per bushel. Suppose that China who imports corn imposes a $0.50 tariff on each bushel of corn. (i) Suppose that China is a small-nation openeconomy. Explain briefly what would happen to the price of corn and total welfare in China? Be specific. (ii) Suppose instead that China is a large-nation open-economy. Explain briefly what would happen to the price of corn and total welfare in China. Be specific..

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The current world price of corn is $6.00 per bushel. Suppose that China who imports corn imposes a $0.50 tariff on each bushel of corn. (i) Suppose that China is a small-nation openeconomy. Explain briefly what would happen to the price of corn and total welfare in China? Be specific. (ii) Suppose instead that China is a large-nation open-economy. Explain briefly what would happen to the price of corn and total welfare in China. Be specific.

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  • 1. The current world price of corn is $6.00 per bushel. Suppose that China who imports corn imposes a $0.50 tariff on each bushel of corn. (i) Suppose that China is a small-nation openeconomy. Explain briefly what would happen to the price of corn and total welfare in China? Be specific. (ii) Suppose instead that China is a large-nation open-economy. Explain briefly what would happen to the price of corn and total welfare in China. Be specific.