A tariff is imposed on strawberries.The tariff will ___________ the price of strawberries in the domestic market,_____________ the quantity of strawberries imported in the domestic market,and ____________ consumers' surplus.
A) raise; lower; lower
B) lower; raise; lower
C) raise; lower; raise
D) lower; lower; raise

Question

Quizplus · Accepted Answer

A tariff on strawberries will raise the price of strawberries in the domestic market because the cost of importing them becomes higher. This, in turn, lowers the quantity of strawberries imported as they become more expensive for consumers and businesses. Consequently, consumers' surplus is lowered because consumers have to pay more for strawberries or switch to other goods, reducing the overall satisfaction or benefit they get from consuming strawberries.

A Tariff Is Imposed on Strawberries