'Import' means bringing goods and services from abroad for sale. In this context, what could be the possible intention behind imposing an import tax on the price of imported goods:
A
to make the good relatively more expensive
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B
to deter the demand for imports
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C
to encourage domestic consumption
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D
all of the above
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Solution
The correct option is D
all of the above
Import duty is levied a) to make the good relatively more expensive; b) to deter the demand for imports; and c) to encourage domestic consumption.