A Tariff Does Which of the Following

question 80

Multiple Choice

A tariff does which of the following?

• A)lowers the world price to the importing country
• B)raises the world price to the exporting country
• C)lowers the world price to the exporting country
• D)raises the world price to the importing country

---

Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on what the seller believes each customer will pay.

Oligopolistic Pricing

A pricing strategy adopted by companies in an oligopoly, where a few firms dominate the market and prices are often influenced by the actions of competitors.

Monopolistic Pricing

This refers to the practice by a monopolist to set prices higher than in competitive markets because they control a large portion of the market for a particular good or service.

Horizontal Demand

A market demand situation where a small change in price leads to a large change in quantity demanded, often indicative of a highly competitive market.