A specific tariff provides home producers more protection when
A) the home market buys cheaper products rather than expensive products.
B) it is applied to a commodity with many grade variations.
C) the home demand for a good is elastic with respect to price changes.
D) it is levied on manufactured goods rather than primary products.
E) the home supply outnumbers the foreign imports.

Question

Quizplus · Accepted Answer

A specific tariff is a fixed fee per unit of imported goods, so it provides more protection when the home market buys cheaper products because the tariff represents a larger percentage of the total cost, making imports less competitive.

A Specific Tariff Provides Home Producers More Protection When