The effect of imposing a tariff on a specific imported good is to ________ the domestic price of the good and ________ the domestic production of the good.

Question

Quizplus · Accepted Answer

Imposing a tariff on a specific imported good increases the domestic price of that good because the added cost of the tariff is typically passed on to consumers. This higher price makes domestic products more competitive, leading to an increase in domestic production.

The Effect of Imposing a Tariff on a Specific Imported