When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off and sellers of shoes in that country become better off.

Question

Quizplus · Accepted Answer

Imposing a tariff on imported shoes increases the price of imported shoes, making domestic shoes relatively cheaper and benefiting domestic sellers by potentially increasing their sales. However, buyers are worse off because they now face higher prices for shoes, whether imported or domestic.

When a Country That Imports Shoes Imposes a Tariff on Shoes