Question
1.If an import tariff is imposed on coconuts that are imported into the U.S., how will this impact the price of coconuts for U.S. consumers?
1.If an import tariff is imposed on coconuts that are imported into the U.S., how will this impact the price of coconuts for U.S. consumers?
Increase the price.
2.How would imposing an import tariff on cigars impact the domestic production of cigars?
Quantity increases for exporting at world price.
3.If an import tariff on coconuts was removed in the U.S., how would this impact the demand for coconuts by U.S. consumers?
The demand would increase.
4.What would happen to the overall domestic demand for a good if an import tariff were imposed on that good?
It would increase.
Can someone please explain in detail why and how questions 1-4 ended up with given answers?
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