When the U.S.government places a tariff on a product,such as the tariff on tires imported from China,the quantity of the product imported will generally ________ and the price paid by consumers for the product will generally ________.
A)increase; increase
B)increase; decrease
C)decrease; increase
D)decrease; decrease

Question

Quizplus · Accepted Answer

When the U.S. government places a tariff on a product, it increases the cost of importing that product, making it less attractive for businesses to import it. As a result, the quantity of the product imported will generally decrease, as businesses seek alternative sources or pass on the increased costs to consumers. This will cause the price paid by consumers for the product to generally increase.