Related to the Economics in Practice on p. 669: Protectionism of the kind that is suggested in the petition of the candle makers would most likely result in
A) more efficient production.
B) lower prices.
C) lower production cost.
D) lower consumption.

Question

Quizplus · Accepted Answer

Protectionism in the form of banning imports of foreign, cheaper candles will result in a decrease in consumption. This is because consumers will have to either pay higher prices for domestically produced candles or go without candles altogether. Therefore, the overall demand for candles would decrease, lowering consumption.

Related to the Economics in Practice on P