If the United States imposes a tariff on foreign chocolate,how are U.S.buyers of chocolate affected?
A) The price they pay for chocolate rises.
B) Their demand for chocolate increases because the U.S. production chocolate increases.
C) The quantity they consume is unchanged.
D) The price they pay for chocolate falls but they consume less chocolate because less is imported.
E) The price they pay for chocolate falls and they consume more chocolate.

Question

Quizplus · Accepted Answer

If the United States imposes a tariff on foreign chocolate, it increases the price of imported chocolate. This increase in price ultimately affects U.S. buyers of chocolate, who will have to pay more than they previously would have for the same quantity of chocolate. This, in turn, could cause demand for chocolate to decrease as consumers seek out cheaper alternatives or reduce their overall consumption.

If the United States Imposes a Tariff on Foreign Chocolate,how