After a tariff is imposed on a good,the price of the good
A) does not change.
B) falls.
C) rises.
D) rises only if the domestic demand for the good does not change.
E) might rise, fall, or not change depending on whether the government did or did not simultaneously impose a quota.

Question

Quizplus · Accepted Answer

When a tariff is imposed on a good, the price of the good usually rises. This is because the tariff increases the cost of importing the good, making it more expensive for consumers to purchase. Domestic producers may also raise their prices to capture some of the increased demand for their products.

After a Tariff Is Imposed on a Good,the Price of the Good