Which of the following is the basis for the consumption effect of a tariff imposed on imported automobiles?

A. The net increase in the availability of the domestic automobiles for the consumers owing to higher prices
B. The net increase in the government revenue by taxing the domestic consumers who buy the imported automobiles
C. The decline in the purchase of the product due to the increase in its price
D. The net increase in the consumption of imported automobiles by the domestic consumers


Answer: C

Economics

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