If a tariff is placed on a good,then imports of the good _________,domestic production of the good ________,and domestic consumption of the good _________.

Question

Quizplus · Accepted Answer

A tariff on a good makes imports more expensive, leading to a decrease in imports. This encourages domestic production to increase as local producers fill the gap. However, the higher prices resulting from the tariff typically lead to a decrease in domestic consumption.

If a Tariff Is Placed on a Good,then Imports of the Good