Asked by
Rebecca Lucas
on Nov 12, 2024Verified
When a country imposes a per-unit tariff on an imported good or service,_____.
A) the price that domestic consumers pay for the import falls
B) the quantity of the good or service imported into the country declines
C) the quantity of the good or service imported into the country increases
D) the price at which any supplier can sell output in the world market decreases
E) the quantity of the good or service demanded by the consumers increases
Per-Unit Tariff
A specific tax levied on each unit of a good imported into a country, as opposed to a percentage of the value.
Imported Good
A product or service brought into one country from another country in a legitimate fashion, typically for use in trade.
Domestic Consumers
Domestic consumers refer to individuals and households within a country who purchase goods and services for personal use, contributing to the internal demand of the country's economy.
- Analyze the impact of trade restrictions like tariffs and quotas on consumer surplus, producer surplus, and government revenue.
Verified Answer
BJ
Learning Objectives
- Analyze the impact of trade restrictions like tariffs and quotas on consumer surplus, producer surplus, and government revenue.