A tariff on a product
A)enhances the economic well-being of the domestic economy.
B)increases the domestic quantity supplied.
C)increases the domestic quantity demanded.
D)results in an increase in producer surplus that is greater than the resulting decrease in consumer surplus.

Question

Quizplus · Accepted Answer

A tariff on a product increases the domestic price, which encourages domestic producers to supply more of the product, thus increasing the domestic quantity supplied.

A Tariff on a Product