Suppose the United States reduced the tariff on digital camera, allowing foreign-produced cameras to more freely enter the U.S. market. Which of the following would most likely occur?

A) The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would rise.
B) The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would fall.
C) The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would fall.
D) The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would rise.

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Kamaal McCain · Accepted Answer

Final Answer : D, Explanation :  Reducing tariffs on digital cameras would likely lower their prices for U.S. consumers due to increased competition. Additionally, with more disposable income from savings on cameras, consumers might spend more on other goods, potentially increasing demand for U.S. exports.

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