Which of the following will not be a consequence of an import tariff?

CA Foundation · Business Economics · MTP · May 2026
Which of the following will not be a consequence of an import tariff?
(A) A. An increase in the price of the product in the domestic market
(B) B. Reduced competitive pressure by foreign firms on the domestic producers
(C) C. Increased level of supply in the domestic market
(D) D. None of the above is correct.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Reduced competitive pressure by foreign firms on the domestic producers

Topics: International Trade

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