If an import tariff is reduced, the domestic quantity demanded is ____ and the quantity supplied domestically is ____, ____ the quantity of goods imported.

Question

Quizplus · Accepted Answer

When an import tariff is reduced, the domestic quantity demanded increases because imported goods become cheaper. The quantity supplied domestically decreases because domestic producers can't compete as effectively with the lower-priced imports. This leads to an increase in the quantity of goods imported.

If an Import Tariff Is Reduced, the Domestic Quantity Demanded