Consider two hypothetical countries, Aniva and Kartaly. Both countries produce iWidgets, and the price of Widgets is lower in Aniva than in Kartaly. If Aniva and Kartaly open to trade, producers in would be more likely to lobby their government for an import tariff on iwidgets in order to protect themselves from foreign competition. Which of the following statements about the effects of the tariff compared to free trade are correct? a. The tariff benefits producers in Kartaly.
b. The extra cost of iWidgets gets passed on to products and services using iWidgets in the production process.
c. In Kartaly, some workers at retail and shipping companies that import iWidgets lose their jobs.
d. As a result of the tariff, the price of the imported iwidget always rises above its domestic price.
e. The tariff will not reduce the price differential between Aniva and Kartaly.