If the U.S.government implements a tariff on Chinese tire imports,the price of Chinese-made tires will ________,the quantity demanded will ________,and consumer surplus will ________.
A)increase; decrease; decrease
B)increase; not change; increase
C)decrease; increase; not change
D)increase; decrease; increase

Question

Quizplus · Accepted Answer

When a tariff is implemented on Chinese tire imports, the price of Chinese-made tires will increase due to the additional cost of the tariff. As a result, the quantity demanded will decrease as consumers will seek alternative, cheaper options. Consumer surplus will also decrease as consumers will no longer have access to the lower-priced Chinese tires.

If the USgovernment Implements a Tariff on Chinese Tire Imports,the Price of Price