If a small nation increases the tariff on its import commodity,its:
A)consumption of the commodity increases
B)production of the commodity decreases
C)imports of the commodity increase
D)none of the above

Question

Quizplus · Accepted Answer

Increasing tariffs on an import commodity generally makes the imported goods more expensive, which can lead to a decrease in consumption of those goods, a potential increase in domestic production as consumers turn to local alternatives, and a decrease in imports of the commodity. Therefore, none of the provided options accurately describe the typical effects of increasing tariffs.

If a Small Nation Increases the Tariff on Its Import