What is the effect of a tariff on the price of imported goods?

It decreases the price

It increases the price

It eliminates the price

It has no effect on the price

That is correct.

1 answer

The correct answer is:

It increases the price.

Tariffs are taxes imposed on imported goods, which typically lead to higher prices for those goods in the domestic market. This increase in price can result from the added cost of the tariff being passed on to consumers by importers and sellers.