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
6 answers
why would prices decrease, if it originally could be produced in another country cheaper?
It would increase so it is B
It would increase so it is c ssorry
Oh my it is B
If a tariff came, why would imports increase? That makes the price higher... Are you guessing?
I'm not confused it with another , so it is an increase for the consumer
2 answers