Asked by Angela


Which of the following situations will arise in the domestic market following the imposition of a tariff?


imports decrease, domestic production increases, prices increase

imports increase, domestic production increases, prices increase

imports increase, domestic production decreases, prices decrease

imports decrease, domestic production increases, prices decrease

I say the last :imports decrease, domestic production increases, prices decrease
Answered by bobpursley
why would prices decrease, if it originally could be produced in another country cheaper?
Answered by Angela
It would increase so it is B
Answered by Angela
It would increase so it is c ssorry
Answered by Angela
Oh my it is B
Answered by bobpursley
If a tariff came, why would imports increase? That makes the price higher... Are you guessing?
Answered by Angela
I'm not confused it with another , so it is an increase for the consumer
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