If a tariff is imposed, the price paid by domestic consumers will ________ and the amount imported will ________.

Question

Quizplus · Accepted Answer

When a tariff is imposed, the price paid by domestic consumers for the imported goods increases due to the added cost of the tariff. Consequently, the higher price generally leads to a decrease in the quantity of the goods imported, as consumers either buy less of the good or switch to alternatives.

If a Tariff Is Imposed, the Price Paid by Domestic