The result of antidumping tariffs is to ?
Correct answer: C. impose a price floor on foreign prices in the importing country
- A. increase consumer surplus in the importing country
- B. decrease producer surplus in the importing country
- C. impose a price floor on foreign prices in the importing country
- D. impose a price ceiling on foreign price in the importing country
Explanation
An antidumping tariff prevents foreign firms from selling below the permitted benchmark price in the importing country, functioning like a price floor on foreign goods. It raises the import price rather than imposing a price ceiling.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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