A tariff is imposed on a good. The tariff will _________quantity supplied, _________quantity demanded, and _________price in the home country.

Question

Quizplus · Accepted Answer

A tariff on a good will increase the cost of producing that good, thus reducing the quantity supplied. At the same time, consumers in the home country will now have to pay a higher price for the good, which will lead to a decrease in quantity demanded. The result is a decrease in both quantity supplied and quantity demanded, which will lead to an increase in price in the home country.

A Tariff Is Imposed on a Good