Import tariffs on a good or a service do all of the following, except
A) increase the equilibrium price in the domestic market.
B) increase the equilibrium quantity sold in the domestic market.
C) helps the domestic producers.
D) raises government revenue.

Question

Quizplus · Accepted Answer

Import tariffs on a good or a service typically reduce the equilibrium quantity sold in the domestic market because the tariff makes imported goods more expensive, leading to a decrease in demand for these goods.

Import Tariffs on a Good or a Service Do All