A tariff imposed on foreign imports will cause _____.
A)demand for imports to increase
B)domestic prices of imports to rise
C)market supply of importable to increase
D)import prices to fall
E)market supply of domestic goods to decline

Question

Quizplus · Accepted Answer

When a tariff is imposed on foreign imports, it increases the cost of importing those goods, which leads to higher prices for those goods in the domestic market. Therefore, the domestic prices of imports will rise.

A Tariff Imposed on Foreign Imports Will Cause _____