Canada Is a Net Importer of Durable Consumer Goods (Washing

question 6

Multiple Choice

Canada is a net importer of durable consumer goods (washing machines,refrigerators,etc.) .If Canada initially has no tariffs and it then imposes a 15% tariff on these goods,we would expect to observe

• A)a reduction in the production of the commodity in Canada.
• B)an upward shift in the commodity's supply curve.
• C)an upward shift in the commodity's demand curve.
• D)a downward shift in the commodity's demand curve.
• E)an increase in the tariff revenue collected by the Canadian government.

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Definitions:

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