Repealing a tariff will likely
A) increase the quantity produced domestically, increase the quantity purchased domestically, and reduce the price charged domestically.
B) reduce the quantity produced domestically, increase the quantity purchased domestically, and reduce the price charged domestically.
C) reduce the amount produced abroad, reduce the price domestically, and reduce the quantity purchased domestically.
D) increase the amount produced abroad, increase the price domestically, and reduce the quantity purchased domestically.

Question

Quizplus · Accepted Answer

Repealing a tariff typically leads to a reduction in the quantity produced domestically because domestic producers become less competitive against cheaper foreign imports. It increases the quantity purchased domestically as consumers have access to more affordable goods. Additionally, it reduces the price charged domestically as the market adjusts to the increased competition from abroad, making goods cheaper for consumers.

Repealing a Tariff Will Likely