Country A is a large country that imports good-quality processed chicken from country B. Suddenly, country A's government decides to impose a tariff on this import. Who among the following will be adversely affected by this policy?
A)Consumers of chicken in country B
B)Consumers of ham in country B
C)Producers of chicken in country B
D)Suppliers of chicken in Country A

Question

Quizplus · Accepted Answer

The tariff imposed by country A's government will make the imported processed chicken from country B more expensive, making it less competitive compared to locally produced chicken in country A. This can lead to a decrease in demand for imported chicken from country B, which negatively affects the producers of chicken in country B. Consumers in country B who consume chicken will not be affected, as the tariff is not imposed on them. Consumers of ham in country B and suppliers of chicken in country A are also not directly affected by the tariff.

Country a Is a Large Country That Imports Good-Quality Processed