If a tariff is imposed, the price paid by domestic consumers will and the amount imported will .

Question

Quizplus · Accepted Answer

When a tariff is imposed, the price paid by the domestic consumers will increase as the foreign producers will incorporate the tariff cost in their prices. Therefore, the domestic consumers will have to pay a higher price for the imported goods. On the other hand, the amount imported will decrease as the foreign producers will find it difficult to sell their goods due to the increased prices. Hence, the answer is A.

If a Tariff Is Imposed, the Price Paid by Domestic