When a country imposes a tariff:
A) the domestic price of the imported good falls.
B) domestic consumption of the imported good falls.
C) domestic production of the good falls.
D) domestic production of the good is unchanged.

Question

Quizplus · Accepted Answer

A tariff increases the price of imported goods, leading to a decrease in domestic consumption of those goods as consumers may switch to domestic alternatives or reduce overall consumption.

When a Country Imposes a Tariff