Honduras Is an Importer of Goose-Down Pillows

Multiple Choice

Honduras is an importer of goose-down pillows.The world price of these pillows is $50.Honduras imposes a $7 tariff on pillows.Honduras is a price-taker in the pillow market.As a result of the tariff,the price of goose-down pillows in Honduras

A) remains at $50 and the quantity of goose-down pillows purchased in Honduras decreases.
B) increases to $57 and the quantity of goose-down pillows purchased in Honduras decreases.
C) increases to a new price between $50 and $57 and the quantity of goose-down pillows purchased in Honduras decreases.
D) increases to a new price above $57 and the quantity of goose-down pillows purchased in Honduras remains the same.