Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 34: Q. 22RQ (page 832)

How does protectionism affect the price of the protected good in the domestic market?

Short Answer

Expert verified

It increases the price of protected goods in domestic markets.

Step by step solution

01

Definition

Protectionism is a policy adopted by the government to protect the domestic industries from foreign competition. Under this policy various trade barriers can be imposed to restrict imports.

02

Explanation

Under protectionism, trade barriers such as tarriiffs and quotas can be adopted. These restrictions limit the supply of product in the domestic economy. As a result, the supply of product decreases, causing the price to increase.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What is the national interest argument for protectionism with regard to certain products?

Is it legitimate to impose higher safety standards on imported goods that exist in the foreign country where the goods were produced?

Do the jobs for workers in low-income countries that involve making products for export to high-income countries typically pay these workers more or less than their next-best alternative?

What is the “race to the bottom” scenario?

How does protectionism affect the price of the protected good in the domestic market?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free