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The restaurant is very expensive. You'd think that it is good but it's not.

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Correct.

Comments  
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Clive

Correct.

Isn’t it supposed to be ‘was’ instead of ‘is’ in the highlighted? Or it doesn’t matter.


The restaurant is very expensive. You'd think that it was good but it's not.

was is better, but in casual speech it doesn't really matter.

Clive

was is better, but in casual speech it doesn't really matter.

Thank you so much. Would you mind checking one more example please?


You would think that the governor would understand his state as well as you do.

Vs.

You would think that the governor understands his state as well as you do.


Which one is correct or they are interchangeable?

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Both are possible. It's hard to choose.