If Canada were to increase the tariff for steel by 50%, what would be the desired effect of this change?
A) to increase the price and amount of steel imports
B) to decrease the price and amount of steel imports
C) to increase the price of steel imports and decrease the amount of steel imports
D) to decrease the price of steel imports and increase the amount of steel imports

Question

Quizplus · Accepted Answer

Increasing the tariff for steel by 50% would make it more expensive for importers to bring steel into Canada, which would likely result in a decrease in the amount of steel imports. Additionally, making steel imports more expensive may also increase the price of steel imports. Therefore, the desired effect of this change would be both a decrease in the amount of steel imports and an increase in the price of steel imports.

If Canada Were to Increase the Tariff for Steel by 50