Suppose Canada Eliminates a 15% Tariff on Foreign-Made Leather Goods

Multiple Choice

Suppose Canada eliminates a 15% tariff on foreign-made leather goods.There will be a ________ in the Canadian price of leather goods,________ profits for domestic leather-goods producers,and ________ in the deadweight loss associated with the tariff.

A) rise; increased; an increase
B) fall; decreased; a decrease
C) rise; increased; a decrease
D) fall; increased; a decrease
E) fall; decreased; an increase