Import tariffs have the effect of:
A)lowering the market price in the domestic economy.
B)increasing producer surplus.
C)reducing producer surplus.
D)increasing consumer surplus.

Question

Quizplus · Accepted Answer

Import tariffs increase the cost of imported goods, making domestic products more competitive in comparison. This can lead to an increase in demand for domestic goods, thereby increasing the producer surplus as domestic producers are able to sell more goods or sell them at higher prices.

Import Tariffs Have the Effect Of