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Australia Is an Importer of Computer Chips and Is Also

Question 111

Multiple Choice
Australia is an importer of computer chips and is also a price taker in the chip market.The world price of these computer chips is $25.If Australia imposes a $5 tariff on chips,what would be the price of computer chips and what will happen to the quantity purchased A)$20 and the quantity purchased will increase B)$20 and the quantity purchased will fall C)$25 and the quantity purchased will increase D)$30 and the quantity purchased will fall

Australia is an importer of computer chips and is also a price taker in the chip market.The world price of these computer chips is $25.If Australia imposes a $5 tariff on chips,what would be the price of computer chips and what will happen to the quantity purchased


A) $20 and the quantity purchased will increase
B) $20 and the quantity purchased will fall
C) $25 and the quantity purchased will increase
D) $30 and the quantity purchased will fall

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