EPF Unit 4 Exam Suppose the U.S. government issued a tariff on steel from other nations How would this affect the demand for U.S.-made steel Demand for U.S.-made steel would decrease because imported steel would be cheaper. Demand for U.S-made steel woul Idecrease because the quality of steel would decline. Demand for U.S.-made steel would increase because the quality of steel would improve. Demand for U.S.-made steel would increase because imported steel would be more expensive.

Question

EPF Unit 4 Exam Suppose the U.S. government issued a tariff on steel from other nations How would this affect the demand for U.S.-made steel Demand for U.S.-made steel would decrease because imported steel would be cheaper. Demand for U.S-made steel woul Idecrease because the quality of steel would decline. Demand for U.S.-made steel would increase because the quality of steel would improve. Demand for U.S.-made steel would increase because imported steel would be more expensive.

Answer 1

Demand for U.S.-made steel would increase because imported steel would be more expensive.

Answer 2

A tariff is a tax imposed by the government on goods imported from other countries. When the U.S. government decides to impose a tariff on steel from other nations, this tax makes imported steel more expensive. This increased cost should, theoretically, lead consumers to seek alternative sources for steel. As domestic (U.S.-made) steel won't be subjected to these tariffs, it will become more competitive in comparison to imported steel that has become more expensive due to the tariff. Thus, it could be anticipated that demand for U.S-made steel would increase. Other factors like quality would remain the same unless given explicit information stating otherwise.

Question

Answer

Answer

Explanation