Consumers receive more consumers' surplus when __________.

Question

Quizplus · Accepted Answer

Consumers receive more consumers' surplus when tariffs do not exist because tariffs increase the price of imported goods, reducing the quantity demanded by consumers and resulting in a decrease in consumer surplus. Quotas also limit the quantity of imported goods, which can lead to higher prices and a decrease in consumer surplus. Therefore, the absence of tariffs and quotas results in more consumer surplus.

Consumers Receive More Consumers' Surplus When __________