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Q.

       If the government puts a tax on imports, the buyers will have to pay a higher price for imports.      So,imports will {fill_ regular}.


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Detailed Solution

       If the government imposes a tax on imports, the buyers will have to pay a higher price for imports. So, imports will fall. An example can justify this statement. An example is if the government of India puts a heavy tax on the import of Chinese toys:
1)      The price of Chinese toys will increase.
2)      Chinese toys would sell less in the Indian market.
3)      Indian buyers would have fewer choices in the market, and toys would become more expensive.
4)      For Indian toy makers, this would allow them to expand their business as there would be less competition in the market.
After seeing this example, it’s clear that if the tax on imports is increased, it will cause a downfall in imports.
 
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