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Turkey Is an Importer of Goose-Down Pillows

Question 154

Multiple Choice

Turkey is an importer of goose-down pillows.The world price of these pillows is $50.Turkey imposes a $7 tariff on pillows.Turkey is a price-taker in the pillow market.As a result of the tariff,the price of goose-down pillows in Turkey


A) remains at $50 and the quantity of goose-down pillows purchased in Turkey decreases.
B) increases to $57 and the quantity of goose-down pillows purchased in Turkey decreases.
C) increases to a new price between $50 and $57 and the quantity of goose-down pillows purchased in Turkey decreases.
D) increases to a new price above $57 and the quantity of goose-down pillows purchased in Turkey remains the same.

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