If a Tariff Is Imposed on Imported Televisions, We Expect

question 5

Multiple Choice

If a tariff is imposed on imported televisions, we expect domestic demand for televisions to:

• A) fall, and the total supply to increase.
• B) rise, and the total supply to decrease.
• C) rise, and the total supply to rise.
• D) remain unchanged, and the total supply to decrease.

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Definitions:

Value

The economic, physical, or appraised valuation of a resource, merchandise, or assistance.

Term Loans

Loans from financial institutions that have a set repayment schedule and a fixed or floating interest rate.

Lockup Agreement

A contractual provision preventing insiders of a company from selling their shares for a certain period of time following an initial public offering (IPO).

Secondary Equity Offerings

Public sale of previously issued stock held by large investors or company insiders, often to raise additional capital.