705EconomicsMedium
If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos?
AThe price of autos within the nation will rise by less than 10 percent
BThe price of autos will not rise because of internal competition
CThe price of autos within the nation will rise by more than 10 percent
DThe price of autos within the nation will rise by 10 percent
Correct answer
D. The price of autos within the nation will rise by 10 percent
Explanation
The correct answer is The price of autos within the nation will rise by 10 percent.