A tariff is imposed on a good.This ________ the quantity supplied and ________ the quantity demanded in the importing country.
A)increases;decreases
B)increases;does not change
C)increases;increases
D)decreases;decreases
E)decreases;increases

Question

Quizplus · Accepted Answer

A tariff on a good typically increases the price of that good in the importing country, which leads to an increase in the quantity supplied by domestic producers (as they are now more competitive compared to the higher-priced imports) and a decrease in the quantity demanded by consumers (due to the higher price).

A Tariff Is Imposed on a Good