If Australia imposes a tariff on foreign chocolate, how are foreign producers of chocolate affected?
A) The tariff has no effect on foreign producers because Australian consumers must pay the higher price.
B) They earn more profit because their chocolate sells for a higher price.
C) They export less to Australia.
D) Their supply increases because they have to pay the tariff.
E) Their supply is unaffected because the quota must be met by Australian producers.
Correct Answer:
Verified
Q24: Q25: Looking at the average tariff rate in Q26: Which of the following chains of events Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()