If a country imposes a tariff on an imported good, the tariff _______ the price in the importing country and _______ the quantity of imports.

Question

Quizplus · Accepted Answer

Imposing a tariff on an imported good means that there is an additional cost added to the price of the good, which raises its price in the importing country. This increase in price will lead to a decrease in the quantity of imports, as consumers will be less likely to purchase the now more expensive good.

If a Country Imposes a Tariff on an Imported Good