A tariff is most likely to _______ prices and _______ consumption of the good or service being protected.

Question

Quizplus · Accepted Answer

A tariff is a tax on imported goods or services. This tax makes the imported product more expensive, increasing its price. As a result, domestic consumers will likely decrease their consumption of the imported product due to the increased cost. Therefore, a tariff is most likely to increase prices and decrease consumption of the protected good or service.

A Tariff Is Most Likely to _______ Prices and _______

A Tariff Is Most Likely to _ Prices and _