If the United States imposes a tariff on foreign chocolate,how are foreign producers of chocolate affected?
A) Their supply increases because they have to pay the tariff.
B) They export less to the United States.
C) They earn more profit because their chocolate sells for a higher price.
D) Their supply is unaffected because the quota must be met by U.S. producers.
E) The tariff has no effect on foreign producers because U.S. consumers must pay the higher price.

Question

Quizplus · Accepted Answer

If the United States imposes a tariff on foreign chocolate, it means that foreign chocolate will be more expensive for U.S. consumers. As a result, U.S. consumers will likely purchase less foreign chocolate, which will lead to a decrease in exports for foreign producers.

If the United States Imposes a Tariff on Foreign Chocolate,how