In the Importing Country, the Most Likely Effect of a Tariff

question 137

Multiple Choice

In the importing country, the most likely effect of a tariff on a good is to:

• A) raise the price and decrease the quantity demanded.
• B) raise the price and increase the quantity demanded.
• C) raise the price without affecting the quantity demanded.
• D) decrease the quantity supplied.

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Definitions:

Geographical Area

A specific physical region or space defined by natural or artificial boundaries.

Administered Vertical Marketing System

A coordinated marketing channel where a single member coordinates activities, without formal agreements, to increase efficiency and effectiveness.

Contractual Agreements

Legally binding contracts or understandings between two or more parties outlining the terms and conditions of a business arrangement.

Marketing Chain

A system of intermediaries or channels through which goods and services pass from the manufacturer to the end consumer.