If the United States Imposes a Tariff on Foreign Chocolate,how

question 258

Multiple Choice

If the United States imposes a tariff on foreign chocolate,how are foreign producers of chocolate affected?

• A) Their supply increases because they have to pay the tariff.
• B) They export less to the United States.
• C) They earn more profit because their chocolate sells for a higher price.
• D) Their supply is unaffected because the quota must be met by U.S. producers.
• E) The tariff has no effect on foreign producers because U.S. consumers must pay the higher price.

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