A-LevelEconomicsInternational economic issues9708/12 · May/June 2022 · Q251 Mark
A small country imposes no tariffs and has a perfectly elastic supply of smartphones from the rest of the world. Which statement is correct after the imposition of a tariff?
AThe domestic demand for smartphones will rise.
BThe domestic price of smartphones will rise.
CThe government will lose tax revenue.
DThe supply of imports will increase.
✓ Correct answer
B: The domestic price of smartphones will rise.
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