A tariff on shoes would lead to:

Question

Quizplus · Accepted Answer

When a tariff is imposed on shoes, foreign shoes become more expensive due to the additional tax, so there will be a decrease in imports and an increase in the demand for domestic shoes. This creates an opportunity for domestic producers to increase their prices and sell more shoes at a higher price. Therefore, both A and B are correct. Additionally, with the increase in price of foreign shoes, there will be a decrease in sales of foreign shoes, leading to C being correct as well.

A Tariff on Shoes Would Lead To