Of the Following,which Group Is Hurt by a Tariff

question 102

Multiple Choice

Of the following,which group is hurt by a tariff?

• A) domestic producers of the good
• B) foreign consumers of the good
• C) domestic consumers of the good
• D) domestic government
• E) foreign government

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Definitions:

Price Ceilings

A legal maximum price set by the government for goods or services, intended to protect consumers by preventing prices from rising above a certain level.

Buyers

Individuals or entities that purchase goods or services for personal use, business operations, or for resale purposes.

Binding Price Ceiling

A government-imposed limit on the price of a good or service that is set below the market equilibrium, leading to shortages.

Consumers

Individuals or entities that use, or consume, goods and services produced within an economy, driving demand and market dynamics.