Describe how tariff could reduce imports.

A tariff is a tax imposed on imports or exports. Tax is an expense and hence increase the price of the goods and services. As price increases, demand decreases. Consequently, suppliers are discouraged from importing goods. However, it's important to note that the demand for goods will increase or decrease depending on the elasticity of demand. Imports with inelastic demand will not decrease even though a tariff is imposed, for example demand for cigarettes. 

Answered by Aminath H. Economics tutor

16175 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Give two disadvantages to the government of rising unemployment.


How would an increase in interest rates impact aggregate demand


Explain two causes of a shift of a supply curve to the right.


Analyse Indifference Curves and the effect on lower prices. (20)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences