After a Tariff Is Imposed on a Good,the Price of the Good

question 23

Multiple Choice

After a tariff is imposed on a good,the price of the good

• A) does not change.
• B) falls.
• C) rises.
• D) rises only if the domestic demand for the good does not change.
• E) might rise, fall, or not change depending on whether the government did or did not simultaneously impose a quota.

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Definitions:

Inventory Units

The quantity of individual items or products that a company holds in stock at any given time.

Cost Flow Assumption

An accounting method used to value the cost of goods sold and ending inventory.

Specific Identification

Specific Identification is an inventory valuation method where costs are assigned to individual items, allowing for precise cost determination of sold goods.

Cost Flow Assumption

An accounting approach to determine the value of remaining inventory and cost of goods sold, not necessarily reflecting the actual physical flow of goods.