Which of the following is not a result we would expect to result from a tariff on leather shoes?
a. The price of leather shoes in the U.S. would increase
b. The amount of shoes imported into the U.S. would decline.
c. Fewer pairs of shoes would be sold in the U.S.
d. Domestic producers would sell fewer shoes at the higher prices.
d
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To set a tax rate at the appropriate level to maximize its tax revenues, a government must engage in
A) static tax analysis. B) dynamic tax analysis. C) debt-free tax analysis. D) ad valorem tax analysis.
Which of the following is true of a price floor?
a. A price floor allows supply and demand to function effectively. b. A price floor is set such that the price is not allowed to increase above a certain level. c. A price floor is beneficial to buyers in a market. d. A price floor usually creates a shortage of a good in a market. e. A price floor is set such that the price is not allowed to decrease below a certain level.