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

Question

Quizplus · Accepted Answer

A tariff is a tax placed on imported goods, so it raises the price of the imported good. Higher prices lead to a decrease in demand for the good, resulting in a decrease in domestic consumption. Therefore, a tariff is most likely to increase prices and decrease domestic consumption, making option B the correct answer.

A Tariff Is Most Likely to _____ Prices and _____

A Tariff Is Most Likely to _ Prices and _