A $100 specific tariff provides home producers more protection from foreign competition when
A) the home market buys cheaper products rather than expensive products.
B) it is applied to a commodity with many grade variations.
C) the home demand for a good is elastic with respect to price changes.
D) 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 applied to cheaper products because the tariff represents a larger percentage of the product's price, making it relatively more expensive compared to domestic goods.

A $100 Specific Tariff Provides Home Producers More Protection from Foreign