When a tariff is removed this will lead to:
A) a rise in imports and greater domestic demand and supply.
B) a rise in imports and a fall in domestic demand and supply.
C) a rise in imports and domestic demand but lower domestic supply.
D) no change in imports as increased demand is met by increased domestic supply.

Question

Quizplus · Accepted Answer

When a tariff is removed, imports become cheaper, leading to an increase in imports. This can increase domestic demand due to lower prices but often results in lower domestic supply as domestic producers may not be able to compete with the cheaper imported goods.

When a Tariff Is Removed This Will Lead To