Which of the following is an impact of tariffs on the country imposing them?
A. The domestic producers of import-competing products are forced to charge a lower price for their products to retain market share.
B. The domestic consumers pay a higher price for the imported products.
C. The supply of the domestic import-competing products declines.
D. The demand for the imported goods by the domestic consumers increases.
Answer: B
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What might cause a demand curve to shift to the right?
A. An increase in the price of a substitute. B. A decrease in the price of a substitute. C. An increase in the price of a complement. D. An increase in the product's own price.
How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?
What will be an ideal response?
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________.
a. excess supply b. excess demand c. ceteris paribus d. a price ceiling
Which of the following about demand is true?
a. The height of the demand curve for a product at a given quantity represents the marginal value derived by the consumption of that unit. b. The height of the demand curve for a product at a given quantity reflects the total value consumers derive from all units of the good consumed. c. The total area above the demand curve for a product is equal to consumer surplus. d. At every quantity, the height of the demand curve for a product represents the cost of producing that unit.