The imposition of import tariff on a good:
A) causes the domestic price to be higher than the world price.
B) reduces trade barriers.
C) reduces domestic supply of the good.
D) increases the domestic demand for the good.

Question

Quizplus · Accepted Answer

Imposing an import tariff on a good typically causes the domestic price of that good to increase, making it higher than the world price. This is because the tariff adds an additional cost to imported goods, which is usually passed on to consumers in the form of higher prices.

The Imposition of Import Tariff on a Good