Suppose Canada eliminates tariffs on German bicycles.As a result, we would expect:

Question

Quizplus · Accepted Answer

Eliminating tariffs on German bicycles would make them cheaper in Canada and would potentially increase demand for them. This would lead to a decrease in the price of German bicycles in Canada, as stated in option A. 
However, this increased demand for German bicycles may come at the expense of Canadian-made bicycles, as consumers switch to the cheaper option. This could result in a decrease in employment in the Canadian bicycle industry, as stated in option C. 
Finally, if demand for German bicycles increases, there is a possibility that the German bicycle industry would need to increase production, leading to potential employment gains in that industry, as mentioned in option B. Thus, all of the above options are expected to occur.

Suppose Canada Eliminates Tariffs on German Bicycles