Use the Following to Answer Questions

question 15

Multiple Choice

Use the following to answer questions:
Figure: Costs of Tariffs
-(Figure: Costs of Tariffs) Refer to the figure. In the figure representing the market for leather, what price would consumers pay for leather in the absence of a tariff or other import restrictions?

• A) a price less than $50
• B) $50
• C) a price somewhere between $50 and $100
• D) $100

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Definitions:

Tariff

A tariff is a tax or duty imposed by a government on goods imported or exported.

Domestic Quantity Demanded

The total amount of a good or service that consumers in a particular country want to buy at given prices.

Tariff

A tax imposed on imported goods and services, intended to increase the cost of imported items and protect domestic industries from foreign competition.

Price

The fund requirement for the acquisition of a good or service.