In May of 2019, the U.S. raised tariffs (import taxes) on a large variety of Chinese imports. In the U.S. market for these Chinese imports, we would see:
A)an increase in the number of consumers.
B)a fall in price.
C)a rise in demand.
D)a rise in price.

Question

Quizplus · Accepted Answer

When tariffs are imposed on imports, it increases the cost of importing those goods, which will lead to an increase in price in the domestic market. Therefore, the correct choice is D, a rise in price. It is unlikely to see an increase in the number of consumers or a rise in demand due to the increased price.