In the wake of worsening relations with China,some Americans called for an increase in tariffs on Chinese products coming into America.If higher tariffs are imposed on clothing produced in China,the price of clothing in America would
A) decrease.
B) increase.
C) not change.
D) first increase then decrease.
E) first decrease then increase.

Question

Quizplus · Accepted Answer

When tariffs are imposed on imported goods, it increases the cost of importing those goods. If higher tariffs are imposed on clothing produced in China, then it would make it more expensive to import clothing from China. As a result, retailers would have to either increase their prices to cover the cost of the tariff or find alternative suppliers. Therefore, the price of clothing in America would increase.

In the Wake of Worsening Relations with China,some Americans Called