A decrease in the import tariff will result in
A) an increase in imports but a decrease in domestic production.
B) a decrease in imports but an increase in domestic production.
C) an increase in price but a decrease in quantity purchased.
D) a decrease in price and a decrease in quantity purchased.

Question

Quizplus · Accepted Answer

A decrease in import tariff will make foreign TV shows cheaper, resulting in an increase in imports. This will create competition for domestic producers, potentially leading to a decrease in domestic production. Thus, choice A is the best answer.

A Decrease in the Import Tariff Will Result in