A tariff on a good when the world price is lower than the domestic pi ice leads

Question

A tariff on a good when the world price is lower than the domestic pi ice leads to Select one a lower domestic consumption of the good than under tree trade domestic imports that will be higher than under tree trade tariff revenues that will be lower than under free trade lower domestic production of the good than under free trade An increase in Americans' demand for vehicles made in Europe Select one a increases the demand for dollars, and so the euro depreciates decreases the demand for euros, and so the euro appreciates increases the demand for euros, and so the euro appreciates increases the supply of euros, and so the euro depreciates A tariff the world supply of a good. Select one reduces increases has no measurable effect on does not change

Explanation / Answer

Ans 1 lower domestic consumption of the good than under free trade

Ans 2 increases the demand for euros, so euro appreciates

ans 3 increases

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