If a country imposes a tariff on an imported good, the tariff ________ the price in the importing country and ________ the quantity of imports.

Question

Quizplus · Accepted Answer

A tariff is a tax on imports. When a country imposes a tariff on an imported good, it increases the cost of that good. This leads to a higher price for the good in the importing country and a decrease in the quantity of the good imported, as consumers and businesses look for cheaper alternatives or reduce consumption.

If a Country Imposes a Tariff on an Imported Good