When the United States imposes a tariff on an imported good,the
A) price of the good in the United States falls.
B) quantity of the good purchased in the United States decreases.
C) quantity of the good produced in the United States decreases.
D) outcome becomes more efficient.
E) amount imported increases.

Question

Quizplus · Accepted Answer

Imposing a tariff on an imported good raises the price of the good in the United States. This makes the domestic substitutes relatively cheaper, which reduces the consumption of the imported good. As a result, the quantity of the good purchased in the United States decreases.

When the United States Imposes a Tariff on an Imported