Question

Jarrod is looking for a pickup truck for his small US-based business. He wants to buy a truck made in another country. When he goes to the dealership, he discovers that the price of the foreign-made truck is higher than US-made trucks. When he asks the salesperson about the higher price, the salesperson replies that it is because of a US tariff placed on foreign-made trucks.

How does a tariff increase the price of foreign-made trucks?

It makes shipping trucks to the United States more expensive.
It is added to the price of foreign-made trucks sold in the US.
It increases the cost of building trucks for the US market.
It is added to the price of all trucks sold in the United States.

Answer 1

Answer: A is the answer

Step-by-step explanation:

Answer 2

A tariff is a tax imposed on imported goods by a country's government. In the case of foreign-made trucks, the tariff would be added to the price of the trucks when they are sold in the United States. This means that the cost of the trucks would be higher than they would be without the tariff. The salesperson is correct in saying that the higher price is due to the US tariff placed on foreign-made trucks. So, the correct answer is "It is added to the price of foreign-made trucks sold in the US."