The Consumption Component of the Deadweight Loss in a Small

question 33

Multiple Choice

The consumption component of the deadweight loss in a small nation arises with a tariff because

• A)the tariff causes consumers to consume less of the good than they normally would have without the tariff.
• B)the tariff causes consumers to consume more of the good than they normally would have without the tariff.
• C)consumers continue to consume the same quantity of the good as before the tariff,but they receive less utility than before the tariff
• D)the marginal utility of the consumption of each good is less after the imposition of the tariff than before,resulting in a loss of consumer surplus

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