What should happen to the equilibrium price and quantity in a market as a result of a tariff on imports?
A. Equilibrium price and quantity should both go down.
B. Equilibrium price should go up, and equilibrium quantity should go down.
C. Equilibrium price and quantity should both go up.
D. Equilibrium price should go down, and equilibrium quantity should go up.
Answer: B
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
A theory stating that individuals make purchasing decisions based on tastes which change randomly at random intervals is not useful because
A) it is not possible to test the predictions of the model. B) tastes are not the only factor influencing behavior. C) the model is too simplistic. D) the predictions of such a model would be incorrect.
In perfect competition, marginal revenue equals the market price
Indicate whether the statement is true or false
What was the total for imports of goods in 2017?
a. -$2,361 billion b. -$1,183 billion c. $1,553 billion d. $1,537 billion