Which of the following would be expected if the tariff on foreign-produced automobiles was increased?
a. The domestic price of automobiles would fall
b. The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.
c. The number of unemployed workers in the domestic automobile industry would rise.
d. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.
b
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After the formation of the European Community (EC), three new nations were admitted in 1973 based on their conformance and compatibility with existing democratic norms, economic stability, and economic development. The nations were:
A) Portugal, Spain, and Finland. B) Belgium, the Netherlands, and Luxembourg. C) Denmark, Ireland, and the United Kingdom. D) Italy, Greece, and Turkey.
A product that has a negative income elasticity of demand is ________ good
A) a complementary B) a substitute C) a normal D) an inferior E) a negative