Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports.
A) rise; a decrease
B) fall; an increase
C) rise; no change
D) rise; an increase
E) fall; a decrease

Question

Quizplus · Accepted Answer

Imposing a tariff on a good typically leads to an increase in the domestic price of the imported product, as the cost of the tariff is often passed on to consumers. This higher price generally results in a decrease in the quantity of imports, as domestic consumers buy less of the more expensive imported goods.

Imposing a Tariff on a Good Leads to a ________