What are the effects of a tariff on a good?

What will be an ideal response?


A tariff taxes the imports of a good, which tends to reduce the quantity of imports and raise price. Due to the higher price, the domestic quantity supplied of the good increases and the domestic quantity demanded decreases. The increase in quantity supplied will be less than the decrease in quantity supplied by imports because of the reduction in quantity demanded. Consumers are worse off while domestic suppliers of this good are better off.