A tariff imposed by Canada on Japanese cars ________ the price of cars in Canada and ________ the quantity of Japanese cars imported into Canada.

A) raises; increases
B) raises; does not change
C) lowers; decreases
D) raises; decreases
E) lowers; increases

Answer: D) raises; decreases

Economics

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If demand is perfectly elastic, the absolute value of the price elasticity coefficient is

A) one. B) infinity. C) zero. D) equal to the absolute value of the slope of the demand curve.

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If a commercial dairy farm wants to raise funds to purchase feeding troughs, it does so in the

A) product market. B) dairy products market. C) factor market. D) output market.

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