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When governments impose restrictions on international trade, this affects the domestic price of the good and reduces total surplus. One such imposition is a tariff (a tax on imported or exported goods and services). See how a tariff impacts price, consumer surplus, producer surplus, tax revenue, and deadweight loss in this video.
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Classroom Considerations
- Knovation Readability Score: 5 (1 low difficulty, 5 high difficulty)
- The intended use for this resource is Instructional