If an import- competing firm is imperfectly competitive,then under free trade an export tariff will domestic market price,_ _ producer surplus,_ consumer surplus, government revenue,and overall domestic national welfare.
A)have no effect on; have no effect on; decrease; increase; decrease
B)decrease; decrease; increase; decrease; have no effect on
C)increase; have no effect on; decrease; increase; decrease
D)increase; have no effect on; increase; decrease; increase
E)decrease; increase; decrease; increase; decrease

Question

Quizplus · Accepted Answer

An export tariff can increase domestic market prices as it restricts supply, leading to decreased consumer surplus and increased producer surplus and government revenue. However, overall domestic national welfare typically decreases due to inefficiencies introduced by the tariff.

If an Import- Competing Firm Is Imperfectly Competitive,then Under Free