Turkey is an importer of wheat.The world price of a bushel of wheat is $7.Turkey imposes a $3-per-bushel tariff on wheat.Turkey is a price-taker in the wheat market.As a result of the tariff,
A)Turkish consumers of wheat become worse off and Turkish producers of wheat become worse off.
B)Turkish consumers of wheat become worse off and Turkish producers of wheat become better off.
C)Turkish consumers of wheat become better off and Turkish producers of wheat become worse off.
D)Turkish consumers of wheat become better off and Turkish producers of wheat become better off.

Question

Quizplus · Accepted Answer

The tariff increases the price of imported wheat, making Turkish consumers worse off due to higher prices. However, it benefits Turkish producers by reducing foreign competition, allowing them to sell more at higher prices.

Turkey Is an Importer of Wheat