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; rise

b.) Fall; fall

c.) Rise; fall

d.) Rise; rise

Question

Travis Gilmore

Business

6 May, 16:36

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; rise

b.) Fall; fall

c.) Rise; fall

d.) Rise; rise

+5

Answers (1)

Know the Answer?

Precious Vincent · Answer 1

The correct answer is letter "C": Rise; fall.

Explanation:

Tariffs are levies imposed by the government in imported products with the objective of protecting domestic production and increase employment rates. However, this scenario causes that the country that was imposed the tariffs retaliates generating "trade wars".

Then, if imported shoes are imposed tariffs, the price of those shoes domestically will raise since the quantity demanded for them is likely to decrease - demand law.

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; riseb.) Fall; fallc.) Rise; falld.) Rise; rise

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; rise

b.) Fall; fall

c.) Rise; fall

d.) Rise; rise