Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
A) The domestic price of automobiles would fall.
B) The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.
C) The number of unemployed workers in the domestic automobile industry would rise.
D) The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.

Question

Quizplus · Accepted Answer

Increasing tariffs on foreign-produced automobiles would likely reduce their supply in the domestic market, as the higher costs could lead to decreased imports. This reduction in supply, with demand remaining constant, would cause the prices of automobiles in the domestic market to rise.

Which of the Following Would Be Expected If the Tariff