How Does the Imposition of a Tariff Reduce the Price

question 69

Multiple Choice

How does the imposition of a tariff reduce the price of imports?

• A)At the lower quantity supplied, the price to the importer is lower than if there were free trade.
• B)At the lower quantity demanded, the price to the importer is lower than if there were free trade.
• C)Supply of the product is increased from domestic production, reducing the price of the imports.
• D)Demand for the product is decreased, so that price must fall.

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Definitions:

Psychological Description

Description of a product or service in terms of audience benefits.

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A persuasive strategy that uses facts, statistics, and objective information to influence the audience's opinion.

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