An import tariff will cause the relative demand for ________ to ________ and the relative supply for ________ to ________.
A) imports; decrease; imports; increase
B) imports; increase; imports; decrease
C) exports; increase; exports; decrease
D) exports; decrease; exports; increase
E) exports; increase; imports; decrease

Question

Quizplus · Accepted Answer

An import tariff makes imported goods more expensive, reducing their demand (relative demand for imports decreases) and encouraging domestic production (relative supply for imports increases).

An Import Tariff Will Cause the Relative Demand for ________