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Which compromise arises when Byzantium uses heavy silk tariffs?

A)Reduced trade but stable prices
B)Strengthened local textile production
C)Improved imperial diplomatic leverage
D)Increased tax revenue, less volume

💡 Explanation

Byzantium risked foreign relations relying on economic control, relying on price inelasticity overseas; Reduced trade occurs due to the **market equilibrium** price floor effect because fewer merchants can afford silk; They accept a trade war, therefore stable pricing; they prefer this over low tax revenues.

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