The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5. The U.S. government imposes a $2 per unit tariff on imported T-shirts.
-The figure above shows that as a result of the tariff,the price of a T-shirt in the United States ________,and the quantity of T-shirts bought ________.

Question

Quizplus · Accepted Answer

The imposition of a tariff on imported goods typically leads to an increase in the domestic price of those goods, as the additional cost of the tariff is often passed on to consumers. Consequently, the higher price usually results in a decrease in the quantity of the goods bought, as consumers may either cut back on purchases or seek alternatives.

The Figure Above Shows the U