Assume that the US produces mangoes in California and also imports them from India. India produces mangoes at a lower cost. A tariff imposed by the US government on mangoes from India will:

Increase the price of mangoes in the US, and lower the quantity of mangoes sold in the US

Explanation:

Tarrifs are amounts that are levied on import of a product aimed at discouraging use of foreign goods and encourage purchase of locally produced goods.

Tariffs will force importers to offer the foreign product at higher price.

In this scenario when Indian mangoes are subjected to tarrif the prices will be high.

Consumers will patronise less of Indian mangoes and instead by more locally produced mangoes.

This will cause price of mango to rise because of relative scarcity of mangoes. It will cause reduction in the amount of mangoes in the United States because the will be a reduction of imported mangoes.

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