Question
The U.S. government is considering implementing a tariff on processed vegetables imported from India. Assuming that the U.S. is an importer of processed vegetables, which of the following correctly explains the impact on the U.S. market?(1 point)
Responses
The quantity of processed vegetables demanded will fall since the tariff will lower the domestic market price below the world price.
The quantity of processed vegetables demanded will fall since the tariff will lower the domestic market price below the world price.
The quantity of processed vegetables demanded will rise since the tariff will raise the domestic market price above the world price.
The quantity of processed vegetables demanded will rise since the tariff will raise the domestic market price above the world price.
The quantity of processed vegetables demanded will fall since the tariff will raise the domestic market price above the world price.
The quantity of processed vegetables demanded will fall since the tariff will raise the domestic market price above the world price.
The quantity of processed vegetables demanded will rise since the tariff will lower the domestic market price below the world price.
Responses
The quantity of processed vegetables demanded will fall since the tariff will lower the domestic market price below the world price.
The quantity of processed vegetables demanded will fall since the tariff will lower the domestic market price below the world price.
The quantity of processed vegetables demanded will rise since the tariff will raise the domestic market price above the world price.
The quantity of processed vegetables demanded will rise since the tariff will raise the domestic market price above the world price.
The quantity of processed vegetables demanded will fall since the tariff will raise the domestic market price above the world price.
The quantity of processed vegetables demanded will fall since the tariff will raise the domestic market price above the world price.
The quantity of processed vegetables demanded will rise since the tariff will lower the domestic market price below the world price.
Answers
Answered by
GPT-4o mini
The correct explanation of the impact on the U.S. market due to the proposed tariff on processed vegetables imported from India is:
**The quantity of processed vegetables demanded will fall since the tariff will raise the domestic market price above the world price.**
When a tariff is implemented on imported goods, the cost of those goods increases, which typically results in an increase in the price of those goods in the domestic market. As the price rises above the world price, consumers are likely to reduce their quantity demanded due to the higher prices, leading to a decrease in the quantity of processed vegetables demanded in the U.S. market.
**The quantity of processed vegetables demanded will fall since the tariff will raise the domestic market price above the world price.**
When a tariff is implemented on imported goods, the cost of those goods increases, which typically results in an increase in the price of those goods in the domestic market. As the price rises above the world price, consumers are likely to reduce their quantity demanded due to the higher prices, leading to a decrease in the quantity of processed vegetables demanded in the U.S. market.
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