Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
supply
B
demand
C
equilibrium
D
surplus
Understanding the Answer
Let's break down why this is correct
Answer
When a tariff is imposed on imported goods, it usually causes the price of those goods to rise because the tariff is an extra tax that importers must pay. As a result, consumers may decide to buy more domestic products that are now relatively cheaper. This shift in consumer preference leads to an increase in the demand for domestic products. For example, if a tariff raises the price of imported shoes, people might start buying more shoes made in their own country instead. Overall, tariffs can help local businesses by making their products more appealing compared to more expensive imports.
Detailed Explanation
When tariffs raise the price of imported goods, people tend to buy more local products. Other options are incorrect because Some might think supply increases, but that's not right; Equilibrium refers to the balance between supply and demand.
Key Concepts
Effects of Tariffs
Market Demand and Supply
Equilibrium Price
Topic
Effects of Tariffs on Markets
Difficulty
hard level question
Cognitive Level
understand
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