Suppose the world price of widgets is $5 each. If a widget-importing country imposed a $2 per widget tariff, what price would that country's consumers pay for widgets?
A) $3
B) $7
C) $5
D) $10
E) A price that is greater than $5 and less than $7.

Question

Quizplus · Accepted Answer

A $2 per widget tariff would increase the price of widgets by $2, so the price for consumers in the importing country would be $5 + $2 = $7.

Suppose the World Price of Widgets Is $5 Each