Page 32 - The Impact of the 2018 Trade War on U.S. Prices and Welfare
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Figure 5: Impact of a Tariff on Prices
∗
S (1 + τ)
p
p τ
∗
p 1 = p (1 + τ)
∗
1
S ∗
A B
∗
p = p 0
0
p ∗ 1 C D
D
m
m 1 m 0
30
