The antebellum period was characterized by many changes in tariff rates. What best describes the effect of removing a tariff on foreign cotton textiles?
A) The total supply curve of textiles would shift back.
B) The price of both foreign-made and domestic-made textiles would decrease.
C) The price of foreign-made textiles would decrease and the price of domestic-made textiles would increase.
D) The total (foreign and domestically produced. quantity of textiles purchased in the US would decrease.
E) The real income of textile consumers would decrease.

Question

Quizplus · Accepted Answer

Removing a tariff on foreign cotton textiles would lower the cost of importing these goods, making them cheaper. This would likely lead to a decrease in the price of both foreign-made and domestic-made textiles, as domestic producers would need to lower their prices to remain competitive. This increased competition benefits consumers through lower prices overall.

The Antebellum Period Was Characterized by Many Changes in Tariff