If a country imposes a tariff on imported shoes, we expect the domestic price of shoes to _______ and the quantity of shoes consumed in the domestic market to _______ .

A) fall; fall
B) fall; rise
C) rise; fall
D) rise; rise


Ans: C) rise; fall

Economics

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Indicate whether the statement is true or false

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For a given increase in supply, the condition of demand that will result in the most significant change in quantity is when demand is

A. inelastic. B. perfectly inelastic. C. perfectly elastic. D. elastic.

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A situation where quantity demanded exceeds quantity supplied is called a(n) ______.

a. substitution b. equilibrium c. shortage d. surplus

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Firms have ________ over their ________ costs in the short run.

A. no control; fixed B. control; overhead C. no control; variable D. control; fixed

Economics