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Suppose the world price of bicycles is below the domestic price in a small open economy....

Suppose the world price of bicycles is below the domestic price in a small open economy.

a. (3) In that small open economy, who would benefit from free trade? Briefly explain.

b. (3) In that small open economy, who would be hurt from free trade? Briefly explain.

c.(3)   Who would benefit from a tariff on bicycles? Briefly explain.

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