if-a-tariff-is-imposed-on-imported-cars-what-is-the-likely-effect-on-the-domesti

Question

If a tariff is imposed on imported cars, what is the likely effect on the domestic car market?

Accepted Answer

Domestic supply increases and domestic demand decreases.

Answer

Domestic supply decreases and domestic demand increases.

Answer

Both domestic supply and demand decrease.

Answer

Both domestic supply and demand increase.