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Answer on Economics of Enterprise Question for xueer

Question #9668
if the goverment imposes an import tax on perfumes.the supply of imported perfume will increase.
true or false and give the reason
Expert's answer
False
& The supply of imported perfume will decrease because importers must pay import tax and it is extra costs for them. So they find and enter other cheaper markets. According to this supply of imported perfume in the country with import tax barrier will decrease.

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