Asked by Harmanveer Singh on Apr 28, 2024
Verified
A U.S. tariff on oil would reduce the domestic quantity of oil demanded.
U.S. Tariff
A tax imposed by the United States government on imported goods to protect domestic industries or to generate revenue.
Oil
A fossil fuel in liquid form, primarily used for energy production and as a raw material in chemicals manufacturing.
Domestic Quantity
Refers to the total amount of a good or service produced within a country's borders, irrespective of the production entity's nationality.
- Interpret the significance of tariffs and trade policies on domestic market environments, especially in terms of their effects on price points, import quantities, and the amounts of commodities that are demanded and supplied.
Verified Answer
JS
Jamal SaundersMay 03, 2024
Final Answer :
True
Explanation :
A tariff on oil would increase the price of imported oil, leading to a decrease in the quantity of oil demanded domestically as consumers and businesses seek alternatives or reduce usage due to higher prices.
Learning Objectives
- Interpret the significance of tariffs and trade policies on domestic market environments, especially in terms of their effects on price points, import quantities, and the amounts of commodities that are demanded and supplied.