Which of the following would be expected if the tariff on foreign-produced shoes were decreased?
A) The domestic price of shoes would fall.
B) The supply of foreign shoes to the domestic market would decline, causing shoe prices to rise.
C) The number of unemployed workers in the domestic shoe industry would decline.
D) The demand for foreign-produced shoes would decrease, causing the price of shoes to increase in other nations.

Question

Quizplus · Accepted Answer

A decrease in tariffs on foreign-produced shoes would likely lead to a decrease in the domestic price of shoes, as cheaper foreign shoes would increase competition in the domestic market.

Which of the Following Would Be Expected If the Tariff