Tariffs typically affect consumers by...

Tariffs typically affect consumers by...

• A. Higher prices and fewer choices.
• B. Lower prices and more choices.
• C. No change in prices.
• D. Government subsidies to consumers.

Answer: (A)

Tariffs are taxes on imports, which raises the cost of goods coming from abroad. When these costs go up, retailers often pass them through to consumers, meaning prices rise. Higher prices reduce what many shoppers can afford, and because some imported goods become too expensive or harder to obtain, the variety of products available to consumers also shrinks. Tariffs don’t lower prices or give subsidies to consumers; they typically push prices up and cut the range of choices.

Tariffs are taxes on imports, which raises the cost of goods coming from abroad. When these costs go up, retailers often pass them through to consumers, meaning prices rise. Higher prices reduce what many shoppers can afford, and because some imported goods become too expensive or harder to obtain, the variety of products available to consumers also shrinks. Tariffs don’t lower prices or give subsidies to consumers; they typically push prices up and cut the range of choices.