In the wake of a worsening trade relationship with China, some Australians have called for an increase in tariffs on Chinese products coming into Australia. If higher tariffs are imposed on clothing produced in China, the price of clothing in Australia will

Question

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If higher tariffs are imposed on clothing produced in China, the cost of importing clothing from China will increase. This will reduce the supply of clothing in Australia, which in turn will increase the price of clothing. Therefore, the price of clothing in Australia will increase.

In the Wake of a Worsening Trade Relationship with China