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Suppose an industry receives protection from the government in the

Question : Suppose an industry receives protection from the government in the : 5018

Suppose an industry receives protection from the government in the form of tariffs. A number of

years later, it is observed that the quantity supplied by domestic firms had decreased and that the domestic

price was substantially greater than the world price. We could conclude that

a. removal of the tariff would actually cause domestic output to increase and price to fall.

b. the tariff had been imposed to counteract dumping and had been successful.

c. removal of the tariff would cause domestic output to fall even further.

d. the tariff had been imposed to protect an infant industry and that the industry still needed protection.

Solution
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Economics 11 Months Ago 103 Views
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