-Refer to Exhibit 34-3.The world price is P_W.If a tariff is imposed,the price rises to P_W + T.Because of the tariff,producers' surplus is __________ by an amount equal to the area of __________. A) increased; 1 + 2 B) decreased; 1 C) increased; 3 + 4 D) increased; 1 E) decreased; 3

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A tariff increases the domestic price, which benefits domestic producers by increasing their surplus. The increase in producers' surplus is represented by the area 1.