If the United States imposes a tariff of $5 per bottle on French wine, the most likely effect will be to raise the:

Question

Quizplus · Accepted Answer

Tariffs typically lead to a price increase in the importing country by less than the amount of the tariff, as the cost is often shared between consumers in the importing country and producers in the exporting country. This means the price of wine in the U.S. would likely increase by less than $5, and the price in France could decrease as producers may lower prices to maintain competitiveness abroad.

If the United States Imposes a Tariff of $5 Per