Which of the following best describes the effect of a tariff?
Choose 1 answer:
A It decreases the domestic price of a good and has no effect on total surplus.
B) It increases the quantity of a good bought in a country and increases tax revenue
(c) It decreases the quantity of a good bought in a country and decreases tax revenue.
D) It alters the behavior of buyers but not sellers.
(E) It increases the domestic price of a good and decreases total surplus.
Not the question you are looking for? Ask here!
Enter question by text
Enter question by image
Upgrade to Asksia Pro
Join a AskSia's Pro Plan, and get 24/7 AI tutoring for your reviews, assignments, quizzes and exam preps.