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Imposition of tariff → Increased price of imported shoes → Decreased demand for imported shoes → Increased demand for domestic shoes
Imposition of tariff → Decreased price of imported shoes → Increased demand for imported shoes → Increased demand for domestic shoes
Imposition of tariff → Increased demand for imported shoes → Increased price of imported shoes → Increased demand for domestic shoes
Imposition of tariff → Stable price for imported shoes → Decreased demand for domestic shoes → Increased supply of imported shoes
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Effects of Tariffs on Markets
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