If Australia Imposes a Tariff on Foreign Chocolate, How Are

Multiple Choice

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

A) Their supply increases because they have to pay the tariff.
B) The tariff has no effect on foreign producers because Australian consumers must pay the higher price.
C) They export less to Australia.
D) Their supply is unaffected because the quota must be met by Australian producers.
E) They earn more profit because their chocolate sells for a higher price.