A tariff is imposed on a good. This ________ the quantity supplied, ________ the quantity demanded, and ________ the price in the home country.
A)increases; decreases; raises
B)increases; does not change; does not change
C)increases; increases; raises
D)increases; decreases; lowers
E)decreases; increases; lowers

Question

Quizplus · Accepted Answer

A tariff increases the price of imported goods, leading to a decrease in quantity demanded and an increase in quantity supplied domestically, thus raising the price in the home country.

A Tariff Is Imposed on a Good