Which of the Following Situations Will Arise in the Domestic

question 46

Multiple Choice

Which of the following situations will arise in the domestic market following the imposition of a tariff?

• A) Imports decrease, domestic production increases, prices increase.
• B) Imports increase, domestic production increases, prices increase.
• C) Imports increase, domestic production decreases, prices decrease.
• D) Imports decrease, domestic production increases, prices decrease.

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Definitions:

Buyer Requirement

A set of criteria or needs specified by the customer which a product or service must meet.

Installation

The process of setting up or configuring a product or system so that it is ready for use.

Delivery

Refers to the process of transporting goods from a seller to the purchaser's location.

Credit

Refers to the ability of a consumer or business to borrow money with the promise to repay it, along with any agreed upon interest, at a later date.