(Answered) Question 4 (1 point)Tariffs may be set todecrease consumer costs, lower price, and increase market…

➤ How can tariffs affect market share for domestic producers?
Tariffs can increase domestic firms’ market share by making imported goods relatively more expensive. This protects local employment and encourages import substitution. However, shielding firms may reduce incentives to innovate, lowering long‑term competitiveness. Retaliatory tariffs abroad can also shrink export markets, offsetting domestic market share gains.