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What Is True of a State That Adopts a Tariff

Question 52

Multiple Choice

What is true of a state that adopts a tariff in the scenario depicted in the figure? What is true of a state that adopts a tariff in the scenario depicted in the figure?   A) It will increase domestic consumption of the good. B) It will have no effect on domestic consumption of the good. C) It will decrease domestic production of the good. D) It will increase domestic production of the good. E) It will have no effect on domestic production of the good.


A) It will increase domestic consumption of the good.
B) It will have no effect on domestic consumption of the good.
C) It will decrease domestic production of the good.
D) It will increase domestic production of the good.
E) It will have no effect on domestic production of the good.

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