Answer to Question #9668 in Economics of Enterprise for xueer

Question

if the goverment imposes an import tax on perfumes.the supply of imported perfume will increase.
true or false and give the reason

Answer 1

False
& The supply of imported perfume will decrease because importers must pay import tax and it is extra costs for them. So they find and enter other cheaper markets. According to this supply of imported perfume in the country with import tax barrier will decrease.