The effect of an import tariff on a specific imported good on (domestic)consumer and producer surplus can be summarized as follows:

Question

Quizplus · Accepted Answer

An import tariff on a specific imported good typically decreases consumer surplus because it raises the price consumers have to pay for that good. On the other hand, it increases producer surplus by providing domestic producers with a price advantage over foreign competitors, allowing them to sell more at higher prices.

The Effect of an Import Tariff on a Specific Imported