A tariff will tend to raise price, lower the amounts consumed and imported, and raise domestic production.

Question

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A tariff is a tax imposed on imported goods. When a tariff is imposed, the price of the imported good becomes more expensive, making domestic products relatively cheaper. As a result, consumers tend to decrease consumption of the imported good and opt for the domestic product leading to a decrease in import quantity. Also, domestic production is stimulated as consumers prefer domestically produced products.

A Tariff Will Tend to Raise Price, Lower the Amounts