If the United States Imposes a Tariff on Foreign Chocolate,how

question 7

Multiple Choice

If the United States imposes a tariff on foreign chocolate,how are U.S.producers of chocolate affected?

• A) The quantity of chocolate they sell decreases because U.S. consumption of chocolate decreases.
• B) The quantity of chocolate they produce increases.
• C) The price at which they sell their chocolate falls.
• D) They are harmed because foreign exporters of chocolate increase their supply in response to the higher price.
• E) They are unaffected because the quota applies to foreign producers, not to U.S. producers.

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