after-a-tariff-is-imposed-what-happens-to-the-gap-between-domestic-quantity-supp

Question

After a tariff is imposed, what happens to the gap between domestic quantity supplied and quantity demanded?

Accepted Answer

The gap narrows as supply increases and demand decreases.

Answer

The gap remains unchanged.

Answer

The gap widens as supply decreases and demand increases.

Answer

The gap widens as both supply and demand decrease.