Refer to Figure 35.5.S₁ represents the U.S.domestic supply of a good and S₂ represents supply in the United States under conditions of free trade.If the United States imposes a tariff on this good, what will happen to the quantity imported?

Question

Refer to Figure 35.5.S<sub>1</sub> represents the U.S.domestic supply of a good and S<sub>2</sub> represents supply in the United States under conditions of free trade.If the United States imposes a tariff on this good, what will happen to the quantity imported? A) Imports will increase because producers will pass the cost of the tariff on to consumers. B) Imports will decline as price increases and domestic production decreases. C) Imports will decline as price increases and domestic production increases. D) Imports will increase as price increases and domestic production increases.

Quizplus · Accepted Answer

The Answer of Refer to Figure 35.5.S₁ represents the U.S.domestic supply of a good and S₂ represents supply in the United States under conditions of free trade.If the United States imposes a tariff on this good, what will happen to the quantity imported?