Consider the import tariff... most goods that are imported into
a country cost more due to import taxes and also to provide
domestic goods an advantage in price. Consider a good that you
currently rely on that is imported, how much more would you pay to
continue to buy the import? At what point would you turn to the
domestic market to save money? Discuss.
A good which is imported and i rely on is information and communications technology products for exame cellphones . If government imposes important tariff on mobile phones then prices of these will increase in the domestic nation .
As a consumer I will buy the product till it is equal to my Marginal utility if the price is greater than MU than will reduce the consumption and shift to the alternativees of the good that is if it is available with same technology in the domestic market at less price .
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