A tariff is imposed on a good.This _______ the quantity supplied, _______ the quantity demanded, and _______ the price in the home country.

Question

Quizplus · Accepted Answer

A tariff increases the cost of producing the good for foreign suppliers, which reduces the quantity supplied. At the same time, it makes the good more expensive for domestic consumers, leading to a decrease in the quantity demanded. As a result, the equilibrium price in the home country is raised.

A Tariff Is Imposed on a Good