The U.S.government currently imposes a $0.54 per gallon tariff on all ethanol imported into the country.If this tariff were removed,then:

Question

Quizplus · Accepted Answer

If the $0.54 per gallon tariff on imported ethanol were removed, the domestic ethanol price would fall, which would increase domestic consumer surplus. At the same time, foreign producer surplus would decline because the removal of the tariff would make it more difficult for foreign ethanol producers to sell their product in the U.S. market. Finally, domestic producer surplus would decrease because domestic ethanol producers would face increased competition from foreign producers, which would drive down prices and profits. Therefore, all of the above choices are correct.

The USGovernment Currently Imposes a $0