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Suppose the United States increases the tariff on automobiles imported from Germany (and other foreign countries). What is the effect of this tariff-rate increase on
a) the price of automobiles in the United States;
b) the total number of cars sold in the U.S. during the year;
c) the number of cars produced by and employment in the German automobile industry;
d) production by and employment in the U.S. automobile industry;
e) German income obtained by selling cars in the U.S;
f) the German demand for goods produced in the U.S;
g) the production of and employment in those U.S. industries that now export goods to Germany;
h) the allocation of resources in the U.S. economy; and
i) the allocation of the world's resources?

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Suppose the United States increases the tariff ........................

Suppose the United States increases the tariff on automobiles imported from Germany (and other foreign countries). What is the effect of this tariff-rate increase on
a) the price of automobiles in the United States;
The price of automobiles in the United States will go up.
b) the total number of cars sold in the U.S. during the year;
The total number of cars sol in the US will go down. Remember the price level will increase. (law of demand).
c) the number of cars ...

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