Question

How did increased demand lead to the increased role of the state (government)?

a. Increased demand led to governments taking control of trade routes and imposing tariffs on goods.
b. Increased demand led to the government providing subsidies to encourage trade.
c. Increased demand led to governments supporting free trade and reducing regulations.
d. Increased demand had no significant impact on the role of the state.

Answer 1

Increased demand led to governments taking control of trade routes and imposing tariffs on goods.

Step-by-step explanation:

Increased demand led to governments taking control of trade routes and imposing tariffs on goods. In order to protect and promote their own domestic industries, governments implemented tariffs on imported goods, making them more expensive for consumers. This encouraged consumers to purchase domestically-produced goods, which were now more competitive in terms of price. By controlling the trade routes and imposing tariffs, governments were able to regulate and influence the flow of goods.