A tariff _ the quantity of the good imported and the domestic price of the imported good.

Question

Quizplus · Accepted Answer

A tariff is a tax on imported goods, which increases the price of the imported good for domestic consumers. This leads to a decrease in the quantity of the good imported because consumers switch to buying domestic substitutes, causing an increase in the domestic price of the imported good. Therefore, a tariff decreases the quantity of the good imported and increases the domestic price of the imported good.

A Tariff _ the Quantity of the Good Imported and the Domestic