If the United States imposed a 25 percent tariff on imports of minivans, the effect would be to Select one: a. raise the price and reduce the quantity of imports. b. raise the price and the quantity of imports. c. lower the price and the quantity of imports. d. raise the quantity and reduce the price of imports.

Question

Victor Hogan

Business

6 May, 23:18

If the United States imposed a 25 percent tariff on imports of minivans, the effect would be to Select one: a. raise the price and reduce the quantity of imports. b. raise the price and the quantity of imports. c. lower the price and the quantity of imports. d. raise the quantity and reduce the price of imports.

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Answers (1)

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Raphael Adkins · Answer 1

A. Raise the price and reduce the quantity of imports

Explanation:

A tariff can be defined as a specific tax levied on an imported good into the country. It is a tool to encourage buying of domestic goods. The method is that an increase in the price paid for importing goods would increase the price of the goods, thereby forcing Americans to buy goods made in America.