The government of Eduland is planning to impose a tariff on the import of sports bikes. How is this policy likely to affect the domestic market for sports bikes in Eduland?
What will be an ideal response?
If the government of Eduland imposes a tariff on the import of sports bikes, the price of imported sports bikes in Eduland will increase. As a result, the demand for domestically manufactured sports bikes will increase. Thus, the domestic market for sports bikes will become stronger.
You might also like to view...
According to the CPI basket, the largest item in the households' budgets is
A) apparel. B) education. C) food. D) transportation. E) housing.
In any efficiency wage model, it must be true that
a. the marginal benefit of increased efficiency is equal to the marginal cost of higher wages. b. nominal wages are inflexible. c. disequilibrium in the labor market exists. d. all of the above. e. none of the above.
When the economy is at full? employment, unemployment is equal to
What will be an ideal response?
If demand for drugs is inelastic, then changes in the supply curve through interdiction efforts will only slightly
A. lower equilibrium quantity. B. raise equilibrium quantity. C. raise equilibrium price. D. lower equilibrium price.