If,at the world price,domestic producers are producing and selling 100 units of a good,then at the world price plus tariff it follows that
A) they will be producing and selling more than 100 units of the good.
B) they will be producing and selling fewer than 100 units of the good.
C) producers' surplus will be less than what it is when domestic producers produce and sell 100 units.
D) consumers' surplus will be greater than what it is when domestic producers produce and sell 100 units.
E) c and d

Question

Quizplus · Accepted Answer

When a tariff is imposed on imported goods, the price of those goods increases in the domestic market. This makes domestic products more competitive compared to the higher-priced imports, leading domestic producers to increase production and sales beyond the original 100 units.

If,at the World Price,domestic Producers Are Producing and Selling 100