Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Consumers tend to buy more domestic products due to higher prices of imports.
B
Consumers ignore price changes caused by tariffs and continue buying imports.
C
Consumers prefer to buy foreign products despite tariffs.
D
Consumers stop purchasing entirely due to increased prices.
Understanding the Answer
Let's break down why this is correct
Answer
Tariffs are taxes that a government places on imported goods, which can change how consumers behave. When tariffs are applied, the price of imported products usually goes up because businesses pass on the extra cost to customers. As a result, consumers may decide to buy less of these expensive imported goods and look for cheaper alternatives, such as locally made products. For example, if a country imposes a tariff on imported shoes, people might start buying shoes made in their own country instead, even if they previously preferred the imported ones. This shift can help local businesses but may limit choices for consumers and raise overall prices.
Detailed Explanation
When tariffs raise the price of imported goods, people often choose to buy products made in their own country. Other options are incorrect because Some might think that people ignore price changes and keep buying imports; It's a common belief that consumers will still prefer foreign products even with tariffs.
Key Concepts
consumer behavior
Topic
Effects of Tariffs on Trade
Difficulty
easy level question
Cognitive Level
understand
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