Asked by
AVERY LEWIS
on Dec 12, 2024
Verified
As a result of a tariff on an imported good,
A) domestic producers are better off because they sell more goods at the same price.
B) domestic producers are better off because they sell more goods at a higher price.
C) domestic producers are better off because they sell the same quantity of goods at a higher price.
D) domestic consumers are better off because there are more domestically produced goods available.
E) domestic consumers are neither better off nor worse off because imports do not change.
Domestic Producers
Local manufacturers and suppliers who produce goods within a country's borders.
Imported Good
A product or service that is brought into one country from another to be sold or used.
Tariff
A tax imposed by a government on goods and services imported from other countries, affecting the price and availability of those goods.
- Discern the implications of tariffs for domestic consumers and producers.
Verified Answer
BT
Learning Objectives
- Discern the implications of tariffs for domestic consumers and producers.