When a tariff is imposed on an imported good, the prices of the similar products produced within the country also increases.

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When a tariff is imposed on an imported good, the price of the imported good rises making it more expensive than the similar products produced within the country. As a result, the demand for the domestic product increases causing an increase in their price. This is known as the protection effect which allows domestic producers to sell their products at a higher price as they are protected from foreign competition.

When a Tariff Is Imposed on an Imported Good, the Prices