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suppose that the tariff on foreign-produced automobiles was increased. all else equal this would result in...

suppose that the tariff on foreign-produced automobiles was increased. all else equal this would result in which of the following statements begin correct? 1.the demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations. 2.the amount of unemployed workers in the domestic automobiles industry would rise 3. foreign countries would send fewer automobiles to the domestic country. the reduction in the supply of foreign automobiles to the domestic country would result in a higher price of automobiles in the domestic country. 4. the price of domestic automobiles would decline.

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Answer #1

Option 3. foreign countries would send fewer automobiles to the domestic country. the reduction in the supply of foreign automobiles to the domestic country would result in a higher price of automobiles in the domestic country.

Explanation: The tariff would lower the import of foreign-produced automobiles and therefore the price of the same would rise in the domestic market.

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