One reason why purchasing power parity may not work perfectly has to do with barriers to trade such as tariffs and quotas on imports

The imposition of tariffs will help a nation attain which of the following goals?

A) decreased domestic consumer prices B) increased domestic employment C) increased amount and variety of goods available for consumers D) increased competition between domestic and foreign producers E) gains for domestic producers

Which of the following describes a situation in which demand must be elastic?

a. The price of pens rises by 10 cents, and quantity of pens demanded falls by 50. b. The price of pens rises by 10 cents, and total revenue rises. c. A 20 percent increase in the price of pens leads to a 20 percent decrease in the quantity of pens demanded. d. Total revenue does not change when the price of pens rises. e. Total revenue decreases when the price of pencils rises.