If a country imposes a tariff on imported shoes,we expect the domestic price of shoes to _____ and the quantity of shoes consumed in the domestic market to _____.

Question

Quizplus · Accepted Answer

When a country imposes a tariff on imported shoes, the domestic price of shoes will increase because it now includes the tariff cost. This makes domestic shoes more competitive in the market, leading consumers to purchase more domestic shoes, causing the quantity of shoes consumed in the domestic market to fall.

If a Country Imposes a Tariff on Imported Shoes,we Expect