QuestionJuly 22, 2025

As a result of a tariff on an imported good, domestic producers are better off because they sell more goods at the same price domestic producers are better off because they sell more goods at a higher price domestic producers are better off because they sell the same quantity of goods at a higher price domestic consumers are better off because there are more domestically produced goods available domestic consumers are neither better off nor worse off because imports do not change

As a result of a tariff on an imported good, domestic producers are better off because they sell more goods at the same price domestic producers are better off because they sell more goods at a higher price domestic producers are better off because they sell the same quantity of goods at a higher price domestic consumers are better off because there are more domestically produced goods available domestic consumers are neither better off nor worse off because imports do not change
As a result of a tariff on an imported good,
domestic producers are better off because they sell more goods at the same price
domestic producers are better off because they sell more goods at a higher price
domestic producers are better off because they sell the same quantity of goods at a higher price
domestic consumers are better off because there are more domestically produced goods available
domestic consumers are neither better off nor worse off because imports do not change

Solution
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Answer

Domestic producers are better off because they sell more goods at a higher price. Explanation 1. Analyze the Effect of Tariff on Domestic Producers A tariff increases the price of imported goods, making domestic goods relatively cheaper. This allows domestic producers to sell more goods at a higher price. 2. Analyze the Effect of Tariff on Domestic Consumers With higher prices due to tariffs, domestic consumers face higher costs and fewer choices, generally making them worse off.

Explanation

1. Analyze the Effect of Tariff on Domestic Producers<br /> A tariff increases the price of imported goods, making domestic goods relatively cheaper. This allows domestic producers to sell more goods at a higher price.<br /><br />2. Analyze the Effect of Tariff on Domestic Consumers<br /> With higher prices due to tariffs, domestic consumers face higher costs and fewer choices, generally making them worse off.
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