The introduction of a tariff ________ consumer surplus,________ producer surplus,and ________ total surplus.
A)increases;decreases;decreases
B)increases;increases;decreases
C)decreases;decreases;decreases
D)decreases;increases;decreases
E)decreases;increases;increases

Question

Quizplus · Accepted Answer

A tariff decreases consumer surplus because it raises prices for consumers, increases producer surplus because it protects domestic producers from foreign competition, and decreases total surplus due to the inefficiencies and deadweight loss it introduces in the market.

The Introduction of a Tariff ________ Consumer Surplus,________ Producer Surplus,and

The Introduction of a Tariff Consumer Surplus, Producer Surplus,and