Suppose that India changes the tariff on all imports from 40% to 10%. What is the desired effect of this change?
A) to increase the price and amount of imports
B) to decrease the price and amount of imports
C) to increase the price of imports and decrease the amount of imports
D) to decrease the price of imports and increase the amount of imports

Question

Quizplus · Accepted Answer

This change in the tariff is intended to decrease the price of imports and increase the amount of imports. With the lower tariff rate, foreign producers will be able to sell their products in India at a lower cost, making them more affordable and attractive to Indian consumers. As a result, the quantity of imported goods demanded within India is likely to increase.

Suppose That India Changes the Tariff on All Imports from 40