The effect of the imposition of a new tariff on some commodity is to ________ domestic production of that commodity and ________ the domestic consumption of that commodity.

Question

Quizplus · Accepted Answer

The imposition of a new tariff on a commodity typically makes imported goods more expensive, which encourages domestic production (hence, increases it) and discourages domestic consumption of that now more expensive commodity (hence, decreases it).

The Effect of the Imposition of a New Tariff on Some