Which of the Following Chain of Events Occurs When a Tariff

question 243

Multiple Choice

Which of the following chain of events occurs when a tariff is imposed on a good?

• A) Domestic prices rise, shifting the domestic supply curve rightward.
• B) Domestic prices fall, shifting the demand curve rightward, and consumers buy more of the good.
• C) Domestic prices fall, decreasing the domestic quantity supplied and increasing the quantity demanded.
• D) Domestic prices rise, decreasing the quantity demanded and increasing the domestic quantity supplied.
• E) Domestic prices rise, shifting the demand curve leftward and the domestic supply curve rightward.

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Definitions:

Retail Credit

An arrangement where retailers offer direct credit facilities to their customers for the purchase of goods and services.

Work-in-progress

Refers to the intermediate goods or partially finished goods that are in the process of production.

Raw Materials

Basic materials or substances used in the initial stages of manufacturing or production.

Finished Goods

Items that are finished being made and can now be purchased by consumers.