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

Decreasing the import tariff will make it cheaper for foreign goods to enter the domestic market, thus making domestic production less competitive. This will result in an increase in imports but a decrease in domestic production.

A Decrease in the Import Tariff Will Result In