The imposition of a tariff on imported wine will increase the domestic price of wine, decrease the quantity of wine imported, and increase the quantity of wine produced domestically.

Question

Quizplus · Accepted Answer

A tariff on imported wine makes imported wine more expensive, leading to higher domestic prices. This decrease in imports encourages consumers to buy more domestically produced wine, thus increasing domestic production.

The Imposition of a Tariff on Imported Wine Will Increase