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If Australia Imposes a Tariff on Foreign Chocolate, How Are

Question 25

Multiple Choice

If Australia imposes a tariff on foreign chocolate, how are Australian buyers of chocolate affected?


A) The price they pay for chocolate falls but they consume less chocolate because less is imported.
B) The quantity they consume is unchanged.
C) The price they pay for chocolate falls and they consume more chocolate.
D) The price they pay for chocolate rises.
E) Their demand for chocolate increases because Australian production of chocolate increases.

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