If a good is imported into (large)country H from country F,then the imposition of a tariff in country H
A)lowers the price of the good in H and could raise it in F.
B)raises the price of the good in H and lowers it in F.
C)raises the price in country H and cannot affect its price in country F.
D)raises the price of the good in both countries (the "Law of One Price").
E)lowers the price of the good in both countries.

Question

Quizplus · Accepted Answer

A tariff imposed by a large country like H raises the domestic price of the imported good, while it can lower the price in the exporting country F due to reduced demand from H.

If a Good Is Imported into (Large)country H from Country