The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries.Assume that all cheddar cheese is identical. $$\begin{array} { | l | c | c | }
\hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \
\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \
\hline \text { Canada } & 10.00 & \
\hline \text { United Kingdom } & 9.00 & \
\hline \text { United States } & 8.00 & \
\hline
\end{array}$$ TABLE 34- 1
-The effect of the imposition of a new tariff is to domestic production of the commodity and the domestic consumption of the commodity.

Question

The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries.Assume that all cheddar cheese is identical. $$\begin{array} { | l | c | c | } 
\hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \
\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \
\hline \text { Canada } & 10.00 & \
\hline \text { United Kingdom } & 9.00 & \
\hline \text { United States } & 8.00 & \
\hline
\end{array}$$ TABLE 34- 1
-The effect of the imposition of a new tariff is to domestic production of the commodity and the domestic consumption of the commodity.

Quizplus · Accepted Answer

The imposition of a tariff increases the price of imported goods, making domestic products more competitive, thus increasing domestic production. However, higher prices generally lead to a decrease in overall consumption.

The Table Below Shows the Prices in Canada of One