If Canada imposes a tariff of $1 per imported shirt,the tariff
A)raises the price of a shirt paid by Canadian consumers.
B)benefits Canadian shirt producers.
C)decreases imports of shirts into Canada.
D)creates a deadweight loss.
E)all of the above.

Question

Quizplus · Accepted Answer

Imposing a tariff on imported shirts will increase the price of the shirt for Canadian consumers, benefit Canadian shirt producers, and decrease imports of shirts into Canada. Additionally, it will create a deadweight loss, as trade that would have otherwise been mutually beneficial is prevented by the tariff.

If Canada Imposes a Tariff of $1 Per Imported Shirt,the