Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports.
A) rise; an increase
B) rise; a decrease
C) fall; an increase
D) fall; a decrease
E) rise; no change

Question

Quizplus · Accepted Answer

Imposing a tariff on a good typically leads to an increase in the domestic price of that product because the cost of importing it becomes higher. This, in turn, usually results in a decrease in the quantity of imports, as domestic consumers buy less of the more expensive imported goods and may turn to domestic alternatives.

Imposing a Tariff on a Good Leads to a ________