Suppose a Certain Country Imposes a Tariff on a Good

question 209

Multiple Choice

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.