Page 33 - The Impact of the 2018 Trade War on U.S. Prices and Welfare
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Figure 6: Impact of a Tariff on Prices with Perfectly Elastic Export Supply
p
p 1 = p (1 + τ) S (1 + τ)
∗
∗
1
A B p τ
∗
∗ ∗
p = p = p 0
1 0 S ∗
D
m
m 1 m 0
31
