Asked by Austin Parker on May 01, 2024
Verified
The higher price of imported products due to trade barriers causes some consumers to shift their purchases to a domestically produced product that is now
A) lower in price because import competition has risen.
B) higher in price because import competition has risen.
C) higher in price because import competition has declined.
D) lower in price because import competition has declined.
Import Competition
The competition that domestic firms encounter from the products and services of foreign producers.
Trade Barriers
Regulations or policies implemented by countries to control the import and export of goods and services.
- Gain insight into the influence of international commerce on domestic market equilibrium and pricing.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
C
Explanation :
Trade barriers reduce import competition, making domestically produced products relatively more attractive despite their higher prices compared to the now more expensive imports.
Learning Objectives
- Gain insight into the influence of international commerce on domestic market equilibrium and pricing.