Which of the following would be expected if the tariff on foreign-produced automobiles were increased?

Question

Quizplus · Accepted Answer

Increasing the tariff on foreign-produced automobiles would increase the cost of importing them into the domestic market, which would lead to a decrease in the supply of foreign automobiles. This decrease would cause the price of automobiles to rise as consumers would turn to domestic-produced automobiles, leading to an increase in demand for domestic automobiles. This increase in demand would cause the domestic price of automobiles to rise. Additionally, if foreign producers are producing less and exporting fewer cars to the domestic market, they may need to reduce their workforce, which could lead to unemployment in the foreign auto industry.

Which of the Following Would Be Expected If the Tariff