Figure 9-11

-Refer to Figure 9-11.What effect does imposing a tariff on carnations have on imports
A)increases imports by 100
B)increases imports by 200
C)reduces imports by 200
D)reduces imports by 400

Question

Figure 9-11
 
-Refer to Figure 9-11.What effect does imposing a tariff on carnations have on imports
A)increases imports by 100 
B)increases imports by 200 
C)reduces imports by 200 
D)reduces imports by 400

Quizplus · Accepted Answer

Imposing a tariff on carnations increases the price of imported carnations, making them less competitive compared to domestically produced carnations. As a result, the demand for imported carnations decreases, leading to a reduction in imports. Looking at the graph, we see that a tariff of $0.50 per stem reduces imports from 600 to 400 stems, which is a reduction of 200 stems. Therefore, the correct answer is C, "reduces imports by 200."

Figure 9-11 -Refer to Figure 9-11.What Effect Does Imposing a Tariff on Imposing