Suppose a certain country imposes a tariff on a good.Which of the following results of the tariff is possible?
A) Consumer surplus decreases by $100;producer surplus increases by $100;and government revenue from the tariff amounts to $50.
B) Consumer surplus decreases by $200;producer surplus increases by $100;and government revenue from the tariff amounts to $50.
C) Consumer surplus increases by $100;producer surplus decreases by $200;and government revenue from the tariff amounts to $50.
D) Consumer surplus decreases by $50;producer surplus increases by $200;and government revenue from the tariff amounts to $150.
Correct Answer:
Verified
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