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In two to three sentences, explain how a tariff on cars can reduce the demand for imported cars.

User Mamal
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2 Answers

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Answer:

A tariff is a tax that is paid on imports and exports.

A tariff on imported cars would reduce the demand for imported cars due to the consumers' preference to pay the lower price for a car made in(or is merely already in) their home country.

Step-by-step explanation:

This is just a more simplified version.

User Philshem
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a tariff by definition is a tax to be paid on a particular class of imports or exports. so if people had to start paying extra for imported cars the demand for imported cars would be reduced and the demand for more domestic vehicles would rise.
User Rakesh Kushwaha
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