When a good is imported,the domestic production of it ________ and the domestic consumption of it ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) increases; does not change

Question

Quizplus · Accepted Answer

When a good is imported, the domestic production of that good decreases because consumers are now buying the imported good instead of the domestically produced good. However, the domestic consumption of that good increases because consumers are now able to purchase the imported good in addition to the domestically produced good. Therefore, choice C is the correct answer.

When a Good Is Imported,the Domestic Production of It ________