When a tariff is imposed on a good, the ________ increases.
A) quantity imported
B) quantity exported
C) domestic quantity purchased
D) domestic quantity produced
E) world price

Question

Quizplus · Accepted Answer

When a tariff is imposed on a good, it makes the price of the imported good more expensive, thereby increasing the cost of foreign competition. This will encourage domestic firms to increase their production to meet the demand, leading to an increase in domestic quantity produced.

When a Tariff Is Imposed on a Good, the ________