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If a Good Is Imported into (Large)country H from Country

Question 14

Multiple Choice

If a good is imported into (large) country H from country F,then the imposition of a tariff in country H


A) lowers the price of the good in H and could raise it in F.
B) raises the price of the good in H and lowers it in F.
C) raises the price in country H and cannot affect its price in country F.
D) raises the price of the good in both countries (the "Law of One Price") .
E) lowers the price of the good in both countries.

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