Of the following, who gains because of tariffs and why?
A) Foreign governments because they gain more revenue.
B) Domestic buyers because they pay a lower price.
C) Domestic buyers because they can be sure of buying high-quality products.
D) Foreign producers because they earn more total revenue.
E) Domestic producers of protected goods because they can sell at a higher price.

Question

Quizplus · Accepted Answer

Domestic producers of protected goods benefit from tariffs because they can sell their goods at a higher price due to a decrease in foreign competition. This results in increased revenue for domestic producers of protected goods.

Of the Following, Who Gains Because of Tariffs and Why