Imposing a Tariff on a Good Leads to a ________

question 64

Multiple Choice

Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports.

• A) rise; a decrease
• B) fall; an increase
• C) rise; no change
• D) rise; an increase
• E) fall; a decrease

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Definitions:

Skimming Pricing

A pricing strategy where a product is initially sold at a high price to target customers who are less price-sensitive, before gradually lowering the price.

Prestige Pricing

A pricing strategy where prices are set higher than average to project exclusivity, quality, or luxury, appealing to consumers' status and prestige.

Standard Markup Pricing

Adding a fixed percentage to the cost of all items in a specific product class.

Cost-Oriented

A pricing strategy where the price of a product or service is determined by adding a profit margin to its production cost.