A small wine and cheese store in Milwaukee sells dozens of different types of cheese-Bulgarian, French, Danish, Greek, and a domestic from its home state of Wisconsin. The domestic cheese sells for less than $2.00 per pound, while all the international cheeses are priced at over $4.00 per pound. Clearly, there is an embargo on international food products.

Question

Quizplus · Accepted Answer

The domestic cheese is priced less than the other cheeses because importers paid a protective tariff on the international cheeses, and the cost is passed on to the consumer. If there were a government embargo against the international cheese, the grocery store would be unable to legally sell any of the imported products.

A Small Wine and Cheese Store in Milwaukee Sells Dozens