If a nation imposes a tariff on an imported product, then the nation will experience a(n)

A) decrease in supply and an increase in the price of the product.
B) decrease in demand and a decrease in the price of the product.
C) decrease in supply of, and an increase in demand for, the product.
D) increase in supply of, and a decrease in demand for, the product.

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade volumes.

Decrease in Supply

This occurs when there is a reduction in the quantity of a good or service that producers are willing and able to supply at all possible prices.

Increase in Price

A situation where the cost of a product or service rises over a period of time.