A country imposes a tariff on imported shoes. As a result, domestic consumers are faced with higher prices for both imported and domestic shoes. What is the most likely immediate effect of this tariff on the domestic shoe market?

When a country imposes a tariff on imported shoes, it means that the government adds a tax to these shoes coming from other countries. This makes imported shoes more expensive for consumers, so they often look for alternatives, which are domestic shoes made in their own country. However, since the tariff raises the price of both imported and domestic shoes, consumers end up paying more overall. For example, if imported shoes used to cost $50 and now cost $70 because of the tariff, domestic shoes might also increase in price from $60 to $75. The immediate effect is that consumers have less choice and face higher prices, which can lead to decreased sales in the shoe market overall.