A specific tariff provides home producers more protection when
A)it is applied to a commodity with many grade variations.
B)the home market buys cheaper products rather than expensive products.
C)the home supply outnumbers the foreign imports.
D)the home demand for a good is elastic with respect to price changes.
E)it is levied on manufactured goods rather than primary products.

Question

Quizplus · Accepted Answer

A specific tariff is a fixed fee per unit, so it provides more protection when the home market buys cheaper products, as the tariff represents a larger percentage of the product's price, making imports less competitive.

A Specific Tariff Provides Home Producers More Protection When