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.

---

Definitions:

Spruce Goose

The nickname for the Hughes H-4 Hercules, famously known as the largest wooden airplane ever constructed and flown only once.

Fixed in Supply

Pertains to goods or resources that have a limited or unchangeable quantity available, regardless of demand.

High-Speed Rail

A type of rail transport that operates significantly faster than traditional rail traffic, using specialized rolling stock and dedicated tracks.

Cost of Living

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.